Q 1. The diagram below depicts the demand curve for "mini burgers" in a nationwide fast-food market. Use the information in this diagram to answer the questions that follows:
a. What is the price elasticity of demand along the range of the demand curve between a price of $0.20 per mini burger and a price of $0.40 per mini burger? Is demand elastic or inelastic over this range?
b. What is the price elasticity of demand along the range of the demand curve between a price of $0.80 per mini burger and a price of $1.20 per mini burger? Is demand elastic or inelastic over this range? c. What is the price elasticity of demand along the range of the demand curve between a price of $1.60 per miniburger and a price of $1.80 per miniburger? Is demand elastic or inelastic over this range?
Answers
1. The diagram below depicts the demand curve for "mini burgers" in a nationwide fast-food market. Use the information in this diagram to answer the questions that follows:
a. What is the price elasticity of demand along the range of the demand curve between a price of $0.20 per mini burger and a price of $0.40 per mini burger? Is demand elastic or inelastic over this range?
b. What is the price elasticity of demand along the range of the demand curve between a price of $0.80 per mini burger and a price of $1.20 per mini burger? Is demand elastic or inelastic over this range? c. What is the price elasticity of demand along the range of the demand curve between a price of $1.60 per miniburger and a price of $1.80 per miniburger? Is demand elastic or inelastic over this range?