Question

The table shows information on demand for ordinary gummy bears and their sugar-free version. Price Sugar-free gummy bears demanded Regular gummy bears demanded ($ per kg) (thousands of kg) (thousands of kg) $2.25 179 483 $2.65 173 377 $3.05 155 271 $3.45 135 153 Use the midpoint method to compute the price elasticities as the price rises from $2.65 to $3.05. Specify the answers to one decimal place. elasticity of demand of sugar-free gummy bears: elasticity of demand of regular gummy bears:

Answer 1

Price Suger free gunny bears demanded $ 2.65 173 $3.05 155 price Elastints using Mid Point Melod Price Elastines - so x Rith a AQ- 173-155 = 18 AP = 3.05 - 2.65= 0.4 Price Elastinly = 0.4 x 18 J 2.65+3.05 17 8 + 155 = 0.78 or 0.8 force de wonal) Price Regular grunny beans den anded $2065 377 $ 3.05 274 &Q=377-271 = 106 AP= 3.05-2.65 = 004 106 2.665+3.05 fruce Elastity : 102 x ² 04 377727 -2.33 or 2.3 Elastinty of demand of suger free gummy bears 10.8 Elastruly of demand of regulen gunory bears 12.3 -as Hote's Ignoring negative signs CamScannero