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Calculating Price elasticity of demand

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Suppose the price of apples rises from $3.50 a pound to $4.00 and your consumption of apples drops from 30 pounds of apples a month to 20 pounds of apples. Calculate your price elasticity of demand of apples. What can you say about your price elasticity of demand of apples? Is it Elastic, Inelastic, or Unitary Elastic? Be sure to show the work you used to support your answer

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Solution Preview

Please refer attached file for complete solution. Formulas are missing here.

Q1=30 Q2=20
P1=3.5 P2=4

Ep =

Where Ep = Coefficient of price ...

Solution Summary

Solution describes the formula to calculating price elasticity of demand for given changes in prices and quantities.