Price Quantity of Pizzas Demanded Quantity of Pizzas Demanded
(Dollars) (Income = $20,000) (Income = $24,000)
8 40 50
10 32 45
12 24 30
14 16 20
16 8 12
- Using the midpoint method, your price elasticity of demand as the price of pizzas increases from $8 to $10 is ___ if your income is $20,000 an ___if your income is $24,000.
- If the price of a pizza is $12, your income elasticity of demand is ____as your income increases from $20,000 to $24,000. However, if the price of a pizza is $16, your income elasticity is ___.