Income elasticity of demand

Assignment Help Business Economics

Reference no: EM132080561

Suppose that your demand schedule for DVDs is as follows:

Price	Quantity of DVDs Demanded	Quantity of DVDs Demanded
(Dollars)	(Income = $10,000)	(Income = $12,000)
8	40	50
10	32	45
12	24	30
14	16	20
16	8	12

Using the midpoint method, your price elasticity of demand as the price of DVDs increases from $8 to $10 is if your income is $10,000 and if your income is $12,000.

If the price of a DVD is $12, your income elasticity of demand is as your income increases from $10,000 to $12,000. However, if the price of a DVD is $16, your income elasticity is

Reference no: EM132080561

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