Question: Using the midpoints formula, calculate the elasticity coefficient for each price level, starting with the coefficient for the
Price Quantity Total Elasticity Elastic or
Demanded Revenue Coefficient Inelastic
$4 100 $400.00 XXXX XXXX
6 80 $480.00 __________ __________
8 60 $480.00 __________ __________
10 40 $400.00 __________ __________
12 20 $240.00 __________ __________
14 1 $14.00 __________ __________
For each coefficient, indicate what type of elasticity is indicated, elastic demand, inelastic demand, or unitary demand.
Explain how the elasticity changes as price increases. Why is this happening?