Refer to the information provided in Figure 5.2 below to answer the questions that follow using both point and midpoint

AL AIN UNIVERSITY OF
SCIENCE AND TECHNOLOGY
COLLEGE OF BUSINESS
ADMINISTRATION
PRINCIPLES OF
MICROECONOMICS
FALL 2015/2016
ASSIGNMENT 1 (DUE ON
WEDNESDAY 21 OCTOBER 2015)

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1.
Refer to the information provided
in Figure 5.2 below to answer the questions that follow using both point and
midpoint formulas..

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Figure 5.2

a. If the
price of a hamburger is increased from $8 to $10, compute the price elasticity
of demand.
b. If the
price of a hamburger is increased from $6 to $8, compute the price elasticity
of demand.
c. If the
price of a hamburger is increased from $2 to $4, compute the price elasticity
of demand
d.
At Point Cthe price elasticity of
demand is -1. Examine the elasticity of the demand curve along line segment EC.
2.
Ahmad consumption from fish is
4 Kg per month when his income is AED 15,000. His consumption from fish rises
to 6 Kg as his income rises to AED 18000. Compute the income elasticity for
Ahmad’s demand.
3.
If the cross-price elasticity of demand
between fish and chicken is 2, find the percentage change in quantity of
chicken if the price of fish is increased by 2.