A local firm produces three types of Pizza, for delivery to homes in the area. The owner has completed research, to discover the demand curves for each of the three pizzas. The schedules are shown below: (Quantities are per week).    Price Pizza A (Qd) Pizza B (Qd) Pizza C (Qd) 12 800 0 100 11 840 0 200 10 880 400 300 9 920 800 400 8 960 1200 500 7 1000 1600 600 6 1040 2000 700 5 1080 2400 800   Plot the three demand curves, on one graph.    Calculate PED for all three pizzas over the price range $9 to $10.  Use the midpoint formula    Explain why the three PED measures are different.  What change would make all three PED measures become more elastic?  What about more inelastic? NB: THIS NOT A GRADED QUESTION, ITS A SAMPLE PRATICE QUESTION.  THANK YOU

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
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Chapter1: Making Economics Decisions
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A local firm produces three types of Pizza, for delivery to homes in the area. The owner has completed research, to discover the demand curves for each of the three pizzas. The schedules are shown below: (Quantities are per week). 

 

Price

Pizza A (Qd)

Pizza B (Qd)

Pizza C (Qd)

12

800

0

100

11

840

0

200

10

880

400

300

9

920

800

400

8

960

1200

500

7

1000

1600

600

6

1040

2000

700

5

1080

2400

800

 

Plot the three demand curves, on one graph. 

 

  1. Calculate PED for all three pizzas over the price range $9 to $10.  Use the midpoint formula 

 

  1. Explain why the three PED measures are different.  What change would make all three PED measures become more elastic?  What about more inelastic?




NB: THIS NOT A GRADED QUESTION, ITS A SAMPLE PRATICE QUESTION. 

THANK YOU

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