Reference no: EM132789890

Daniella tutors English students. She finds that when she charges $5 per hour, students demand a total of 30 hours of tutoring per week. When she raises his rate to $8 per hour, students demand 26 hours per week.

Calculate the price elasticity of demand (using the midpoint method) for Daniella's tutoring

Is the demand for Daniella's tutoring service perfectly inelastic, inelastic, unit elastic, elastic, or perfectly elastic? Explain

Suppose that Joshua is currently charging $8 per hour for economics tutoring and students demand 26 hours per week. During finals week, Joshua decides to raise his rate to $16 per hour during the week and finds that students still demand 26 hours per week.

Is the demand for Daniella's tutoring service perfectly inelastic, inelastic, unit elastic, elastic, or perfectly elastic? Explain