Price $7 5 4 →PED = 2:2=7 Elastic → A 3 2 1 Let 0 •• Price Elasticily ª = 40. Qavg = 2.5 522 (PED) Parg AP Homework: Gle

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Price 7 5 4 Ped 2 2 7 Elastic A 3 2 1 Let 0 Price Elasticily A 40 Qavg 2 5 522 Ped Parg Ap Homework Gle 1 (54.26 KiB) Viewed 33 times

Price $7 5 4 →PED = 2:2=7 Elastic → A 3 2 1 Let 0 •• Price Elasticily ª = 40. Qavg = 2.5 522 (PED) Parg AP Homework: Glealate PED When P₁= 2₁ P₁ = 3 and Q₂ = 10, Q₁ = 8 and what does you'r PED mean 2 Price $7 2 4 765432 0246899 Quantity 10 P₁ = 5 P₁ = 4 4 P=1 10 Elasticity is larger than 1. A 10% Pin P⇒ 22% & in Q2ª & vice versa. 6 8 Elasticity is smaller than 1. Elasticily Homework 10 12 14 Quantity Total Revenue (Price x Quantity) 0022828|| $0 12 Qo=42=> Q₁ = L 4Q=-2 20 24 24 13 FIGURE Elasticity along a Linear Demand Curve The slope of a linear demand curve is constant, but its elasticity is not. The price elasticity of demand is calculated using the demand schedule in the table and the midpoint method. At points with a low price and high quantity, the demand curve is inelastic. At points with a high price and low quantity, the demand curve is elastic. Percentage Change in Price 15 26 Qarg = (6+4)= 2 = 5 Parg = (5+4)=2=4.5 986055 18 22 29 40 67 Percentage Change in Quantity 200 67 40 29 22 18 Elasticity 13.0 3.7 1.8 1.0 0.6 0.3 Description Elastic Elastic Elastic Unit elastim Inelastic Inelastic Imaluatio