Use the Mid-Point formula to calculate the elasticity for each of the following cases:
NOTE: Write out the formulas before solving the problems. Solution without appropriate formula will be considered wrong.
CASES:
A. The price of a certain cough syrup decreased from $10 to $5 a bottle, which caused the quantity demanded to increase from 700 bottles to 1000 bottles per day. Is demand elastic, inelastic, or unitary.
B. The quantity of a certain shirt demanded decreased from 75,000 to 10,000 units per month as a result of an increase in price from $18 to $19. Is demand elastic, inelastic, or unitary?
C. The price of a certain computer game increased from $32 to $40 which caused the quantity demanded to decrease from 5,000 to 3,000 per year. Is demand elastic, inelastic, or unitary?
D. You know that Krystal's consumption of Lobster rises from 150 pounds to 200 pounds a year because her income increased from $15,000 a year to $24,000 a year.
Calculate the elasticity and identify the type of good Lobster is to Krystal.