Price ($ per kg) Sugar-free Gummy Bears Demanded (thousands of kg) Regular Gummy Bears Demanded (thousands of kg) $2.20 183.00 487.00 $2.60 177.00 381.00 $3 159 275.00 $3.40 139.00 157.00 As the price of gummy bears rises from $2.60 to $3, what are the price elasticities of demand of sugar-free gummy bears and of ordinary gummy bears? Use the midpoint method and specify answers to one decimal place. Elasticity of demand of sugar-free gummy bears:___________ Elasticity of demand of regular gummy bears:______________
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The table shows information on the conditions of
| Sugar-free Gummy Bears Demanded (thousands of kg) | Regular Gummy Bears Demanded (thousands of kg) | |
|---|---|---|
| $2.20 | 183.00 | 487.00 |
| $2.60 | 177.00 | 381.00 |
| $3 | 159 | 275.00 |
| $3.40 | 139.00 | 157.00 |
As the price of gummy bears rises from $2.60 to $3, what are the price elasticities of demand of sugar-free gummy bears and of ordinary gummy bears? Use the midpoint method and specify answers to one decimal place.
Elasticity of demand refers to the degree of responsiveness of the quantity demanded of a good to change in any of the determinant, in order to determine the price elasticity of demand it is necessary to have information about two components that is percentage of change in price and percentage change in the quantity demanded of the goods on dividing these two components the price elasticity of demand can be calculated. There are two other forms of elasticity is, that is, income elasticity of demand which is related to the income of the consumer and the quantity demanded of the good and the cross elasticity of demand which is related to the relationship between two related good.
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