Suppose that your demand schedule for pizza is as follows: Price Quantity of Pizzas Demanded Quantity of Pizzas Demanded (Dollars) (Income = $20,000) (Income = $24,000) 8 4O 50 10

Suppose that your demand schedule for pizza is as follows: Price Quantity of Pizzas Demanded Quantity of Pizzas Demanded
(Dollars) (Income = $20,000) (Income = $24,000)
8 4O 50
10 32 45
12 24 30
14 16 20
16 8 Using the midpoint method, your price elasticity of demand as th f pizzas increases from $10 to $12 is 1.57 v if your income is $20,000 and 0.64 v if your income is $24,000. If the price of a pizza is $10, your income elasticity of demand is 1.86 V as your income increases from $20,000 to $24,000. However, if the price of a pizza is $14, your income elasticity is 0.10 v .

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