Refer to the information provided in Figure 5.2 below to answer the questions that follow using both point and midpoint

November 24, 2016

Question
AL AIN UNIVERSITY OF SCIENCE AND TECHNOLOGY

PRINCIPLES OF MICROECONOMICS

FALL 2015/2016

ASSIGNMENT 1 (DUE ON WEDNESDAY 21 OCTOBER 2015)

_________________________________________________________________________

1. Refer to the information provided in Figure 5.2 below to answer the questions that follow using both point and midpoint formulas..

.jpg”>

Figure 5.2

a. If the price of a hamburger is increased from \$8 to \$10, compute the price elasticity of demand.

b. If the price of a hamburger is increased from \$6 to \$8, compute the price elasticity of demand.

c. If the price of a hamburger is increased from \$2 to \$4, compute the price elasticity of demand

d. At Point Cthe price elasticity of demand is -1. Examine the elasticity of the demand curve along line segment EC.

2. Ahmad consumption from fish is 4 Kg per month when his income is AED 15,000. His consumption from fish rises to 6 Kg as his income rises to AED 18000. Compute the income elasticity for Ahmad’s demand.

3. If the cross-price elasticity of demand between fish and chicken is 2, find the percentage change in quantity of chicken if the price of fish is increased by 2.

Get a 30 % discount on an order above \$ 5
Use the following coupon code:
CHRISTMAS
Positive SSL