The following is a demand schedule for shoes:
Price: $100 ; $80 ; $60 ; $40 ; $20
Quantity: 10 ; 14 ; 18 ; 22 ; 26
A) Illustrate the demand curve.
B) How much will consumers spend on shoes at a price of $80?
C) As price drops from $100 to $80, is the demand elastic or inelastic? Show your work or reasoning.
Advertisers convince people that to be stylish they need twice as many shoes.
D) Redraw the demand curve.
E)How much will consumers now spend on shoes at a price of $80?
F) As price drops from $100 to $80, how does elasticity change as opposed to problem 1? Why?