Question
Show price elasticity of demand for Company XYZ’s product.
Using the following data:
Price Quantity
2000 5.00 100
2001 5.25 115
2002 5.50 150
2003 6.00 198
Calculate endpoint elasticity from 2000 to 2003 over the entire period.
Use the arc convention and the traditional percent change calculations.
Show work and compare results.
Finally, is this a typical situation?
Using the following data:
Price Quantity
2000 5.00 100
2001 5.25 115
2002 5.50 150
2003 6.00 198
Calculate endpoint elasticity from 2000 to 2003 over the entire period.
Use the arc convention and the traditional percent change calculations.
Show work and compare results.
Finally, is this a typical situation?