Calculate income elasticity of demand as income increases

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Reference no: EM13244533

Good Evening Cramster Family & Friends:

Suppose that your demand schedule for compact discs is asfollows:
Quantity Demanded QuantityDemanded
Price (income=$10,000) (income is$12,000)
$8 40CDs 50CDs
10 32 45
12 24 30
14 16 20
16 8 12
Use the midpoint method to calculate your price elasticity ofdemand as the price of compact discs increases from $8 to $10 if(i) your income is $10,000 and (ii) your income is $12,000. And calculate your income elasticity of demand as your income increases from $10,000 to $12,000 if (i) the price is $12 and (ii)the price is $16. How do I accomplish this?

Reference no: EM13244533

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