Microeconomics 18th Edition by Campbell McConnell, Stanley Brue, Sean Flynn

Exercise 9

Graph the accompanying demand data, and then use the midpoint formula for E d to determine price elasticity of demand for each of the four possible $1 price changes. What can you conclude about the relationship between the slope of a curve and its elasticity Explain in a nontechnical way why demand is elastic in the northwest segment of the demand curve and inelastic in the southeast segment.