Mr.
Weiss
Section 9 – Module 46 – Calculating Elasticity
Twins Beth and Cara share a love for books on economics,
but each twin has her own set of preferences. Below is the
demand schedule for the twins, which indicates the quantity
of books Beth and Cara would be willing to purchase at
various prices.
Price
$1
2
3
4
5
6
7
8
9
Beth's Quantity
100
90
80
70
60
50
40
30
20
Cara's Quantity
100
95
90
85
80
75
70
65
60
Mr.
Weiss
Section 9 – Module 46 – Calculating Elasticity
Twins Beth and Cara share a love for books on
economics, but each twin has her own set of
preferences. Below is the demand schedule for
the twins, which indicates the quantity of books
Beth and Cara would be willing to purchase at
various prices.
Price
$1
2
3
4
5
6
7
8
9
Beth's Quantity
100
90
80
70
60
50
40
30
20
Cara's Quantity
100
95
90
85
80
75
70
65
60
1. Draw a
graph and
label the
demand curve
for Beth.
2. Draw the
demand curve
for Cara.
Mr.
Weiss
Section 9 – Module 46 – Calculating Elasticity
Twins Beth and Cara share a love for books on
economics, but each twin has her own set of
preferences. Below is the demand schedule for
the twins, which indicates the quantity of books
Beth and Cara would be willing to purchase at
various prices.
Price
$1
2
3
4
5
6
7
8
9
Beth's Quantity
100
90
80
70
60
50
40
30
20
Cara's Quantity
100
95
90
85
80
75
70
65
60
The midpoint, or arc,
formula is:
new Q - old Q
average Q
new P - old P
average P
3. Using the midpoint
(or arc) formula,
calculate the price
elasticity of demand
for Beth in the $1 to
$3 price range.
Mr.
Weiss
Section 9 – Module 46 – Calculating Elasticity
Twins Beth and Cara share a love for books on
economics, but each twin has her own set of
preferences. Below is the demand schedule for
the twins, which indicates the quantity of books
Beth and Cara would be willing to purchase at
various prices.
Price
$1
2
3
4
5
6
7
8
9
Beth's Quantity
100
90
80
70
60
50
40
30
20
Cara's Quantity
100
95
90
85
80
75
70
65
60
The midpoint, or arc,
formula is:
new Q - old Q
average Q
new P - old P
average P
4. Using the
midpoint (or arc)
formula, calculate
the price elasticity
of demand for Cara
in the $1 to $3 price
range.
Mr.
Weiss
Section 9 – Module 46 – Calculating Elasticity
Mr.
Weiss
Section 9 – Module 46 – Calculating Elasticity