Explain what elasticity of demand means

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Reference no: EM133564447

Assignment:

Prior to beginning work on this assignment, review your textbook, Principles of Microeconomics and Price elasticity of demand using the midpoint method | Elasticity | Microeconomics | Khan Academy.

It is essential that the quantity of goods and services should be produced according to the demand for these products. The knowledge of elasticity of demand helps in determining this output level.

For the Elasticity of Demand Assignment, you will submit a worksheet and a paper in Waypoint.

In the Elasticity of Demand Worksheet Download Elasticity of Demand Worksheet, calculate the following:

Price Elasticity of Demand
Percentage Change
Revenue

Based on the readings for the week and your calculations from the worksheet, answer the following questions:

In your paper,

Explain what elasticity of demand means. Support your explanation with a suitable example.
Describe the relationship between elasticity of demand and revenue when the prices are changed. [Hint: make sure to refer to the worksheet]
Rank the demand of these three goods by their expected price elasticities of demand from most elastic to least elastic 1) a blue colored iPhone 2) a smartphone 3) iPhone.
Explain why you ranked the goods above in the way you did.

Reference no: EM133564447

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