Authors libby rittenberg 286

Demand curve D1 [Panel (a)] Demand curve D2 [Panel (b)] Price Quantity Price Quantity A 80 E 20 B 70 F 30 C 30 G 70 D 20 H 80 Compute the price elasticity of demand between points A and B and between points C and D on demand curve D1 in Panel (a) Are your results consistent with the notion that a linear demand curve is price elastic in its upper half and price inelastic in its lower half? Compute the price elasticity of demand between points E and F and between points G and H on demand curve D2 in Panel (b) Are your results consistent with the notion that a linear demand curve is price elastic in its upper half and price inelastic in its lower half? Compare total spending at points A and B on D1 in Panel (a) Is your result consistent with your finding about the price elasticity of demand between those two points? Compare total spending at points C and D on D1 in Panel (a) Is your result consistent with your finding about the price elasticity of demand between those two points? Compare total spending at points E and F on D2 in Panel (b) Is your result consistent with your finding about the price elasticity of demand between those two points? Attributed to Libby Rittenberg and Timothy Tregarthen Saylor URL: http://www.saylor.org/books/ Saylor.org 286