Help me with the following elasticity exercise, using the table attached for the data.

Determine:
I. The price-elasticity of demand coefficient.
Ii. The name as elastic, inelastic, unitary, perfectly elastic or perfectly inelastic.
Iii. The type of good as luxury or necessity.
Iv. The change in total revenue or total expenditure (see attachment), that is, the monetary result of subtracting tr before price change and after price change.
V. The direction of the change, also in monetary terms, that is, increasing or decreasing, and by how much?

The price elasticity of demand (PeD) coefficient is found by dividing the percentage change in quantity by the percentage change in price. For example, for the first row, we can find the percentage change by dividing the change in quantity by original quantity.

Thus we have: ( Q2 - Q1 ) / Q1 = 5/ 10 = 0.5 or 50%

In the same way we find the percentage change in price: ( 2 - 1) / 1 = -1/1 = - 1.0 or - 100 percent
This gives us E =%change quantity/ %change price = 50/ - 100 =- .5. Values less than one indicate inelastic demand, while values higher than one indicate ...

Solution Summary

Calculation of price elasticity of demand and determination of luxury vs necessity goods. Finding total revenue and relating this to elasticity.

1. Determine the priceelasticity of demand at each quantity demanded using the formula: Percentage change in quantity demanded = (Q2-Q1)/Q1 divided by percentage change in price = (P2-P1)/P1
b. Redo exercise 1a using price changes of $10 rather than $5
c. Plot the price and quantity date given in the demand schedule. Indi

Suppose the price of apples rises from $3 a pound to $3.45 and your consumption of apples drops from 30 pounds of apples a month to 21 pounds of apples. Calculate your priceelasticity of demand of apples. What can you say about your priceelasticity of demand of apples? Is it elastic, inelastic, or unitary elastic?

Suppose the demand function is Q=100-P, where Q is the quantity demand and P is the price. Please calculate the priceelasticity at P=10 (by comparing it with a pair of price and quantity at P=20). Calculate the change in total revenue which is P times Q moving from P=10 to P=20. Repeat the same exercise for P=70 versus P=80.

Quantity PriceElasticityDemanded
100 $ 5
80 $10
60 $15
40 $20
20 $25
10 $30
1. Determine the priceelasticity of demand at each quantity demanded using the formula % chg in QD divided by % chg in price.
2. Redo #1 using price changes of $

1. A market consists of two individuals. Their demand equations are Q1 = 16-4P and Q2 = 20-2P respectively.
a. What is the market demand equation?
b. At a price of $2, what is the point priceelasticity for each person and for the market?

Consider a service that you buy frequently. (Can use pedicure 2 times per month at $50 for graph and calculation)
a. Suppose that the price was 5% lower and all other factors do not change. How much more would you buy each year?
b. Using this information, calculate the own-priceelasticity of your demand.

Price rises from $10 to $15, and the quantity demanded falls from 100 units to 60 units. What is the coefficient of the priceelasticity of demand between the two prices?
A) 1.25
B) 0.80
C) 0.60
D) 1.00

The price of a firm's product increases from $5 to $6. As a result, the quantity demanded of the product declines from 600,000 to 500,000. The priceelasticity of demand for the good is equal to (Use the arc priceelasticity of demand).

Details: Suppose you are a painter, and the price of a gallon of paint increases from $3.00 a gallon to $3.50 a gallon. Your usage of paint drops from 35 gallons a month to 20 gallons a month. Perform the following:
1.Compute the priceelasticity of demand for paint and show your calculations.
2.Decide whether the demand for p