Question - The table and graph below show the weekly demand for machine screws at the local hardware store.
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Demand for Machine Screws
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Price (dollars per pack of 100 screws)
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Quantity (packs of 100 screws)
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$5.00
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0
|
|
4.50
|
60
|
|
4.00
|
120
|
|
3.50
|
180
|
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3.00
|
240
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2.50
|
300
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2.00
|
360
|
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1.50
|
420
|
|
1.00
|
480
|
|
0.50
|
540
|
|
0.00
|
600
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a. Using the midpoint method, what is the price elasticity of demand from a price of $5.00 to a price of $4.00 per pack of 100 screws?
b. Using the midpoint method, what is the price elasticity of demand from a price of $3.00 to a price of $2.00 per pack of 100 screws?
c. Using the midpoint method, what is the price elasticity of demand from a price of $1.50 to a price of $0.50 per pack of 100 screws?
d. At which price is demand the most elastic?