How do I calculate the elasticity coefficient?


1. In the following table, calculate the elasticity coefficient between each of the seven prices and indicate whether the character of demand is Elastic(E), inelastic(I), or unitary(U) at that midpoint. Also indicate the Total Revenue for each price. Round to the nearest 1/100. Use the Midpoint Formula.
Price X Demanded T.R. Elasticity Coefficient Character of Demand

$1.40 10 _____ ___________ ________
1.20 20 _____ ___________ _________

1.00 30 _____ ___________ _________
.80 40 _____ ___________ ________
.60 50 _____ ___________ _______
.40 60 _____ ___________ _____
.20 70 _____ ___________ ____

a. The elasticity of demand between the $1.00 and $.80 points indicates that a 1% decline in prices will result in a _______ % ________ in quantity demanded; conversely, a 1% increase in price results in a _____% ________ in quantity demanded.
joiiesade
Asked Jun 02, 2016

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