Tuesday, May 22, 2018

Tuesday/Wednesday May 22-23

Calculate the Elasticity of Demand and determine whether the demand is elastic, inelastic, or unitary elastic for the following questions

  1. When price of a deluxe car wash rises from $10.00 to $11.00, the number of daily customers falls from 60-48.

  1. A dentist with 80 patients cuts his fee for a cleaning from $60.00 to $54.00.  He now goes from 80 patients to 92.

  1. An airline raises their baggage fees from $50 to $65, the number of flights drop from 100/day 88/day.

  1. Price for a bushel of apples decreases from $4 to $3.  The number of bushels sold increases from 32-45.

  1. A newsstand sells magazines for $2/magazine and will sell 100 at this price.  They raise their price 50% and in turn sell 50% less magazines.


  1. Ashley raises the price in slices of pizza from $1.00 to $1.50; consequently she sells 3 slices instead of 4.

Elasticity Worksheet

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