Calculate the price elasticity of demand

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Reference no: EM138316

Q. For two weeks, record the price and quantity of your purchases of: a) gasoline; and b) one other item you buy regularly (e.g. coffee, newspaper, specific fast food item, specific fruit, vegetable grocery or food item). The second item should be you buy on at least a weekly basis. Anyone who doesn't buy gasoline regularly, please think of two items purchased on at least a weekly basis. Each team member should maintain his/her own list and report his/her results to the group. Then, using the formula for interval or arc elasticity on p. 214 calculate the price elasticity of demand for each product and compare with your teammates' elasticities.

Reference no: EM138316

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