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Price Elasticity in the UK

   

Added on  2020-04-01

20 Pages3407 Words54 Views
Economics 1Economics

Economics 2Table of ContentsTask 2:.............................................................................................................................................3Task 3:.............................................................................................................................................9Task 4:...........................................................................................................................................13References:....................................................................................................................................19

Economics 3Task 2:1).1. The high-quality jewellery is more price elastic in comparison of a carton of milk. 2. A tank of petrol is more price elastic as compared to a bag of oranges. 3. Tiptop bread is more price elastic in comparison to all brands of bread. 4) The demand curve D2 is more inelastic as compared to demand curve D1. Working notes and Explanation:

Economics 4Price elasticity of demand can be measured by using the midpoint formula. The formula of theprice elasticity of demand as below: =(Q2−Q1)÷(Q2+Q1)/2(P2−P1)÷(P2+P1)/2Price elasticity of demand for demand curve D1 is as below:(300−200)÷(300+200)/2(2.50−3)÷(2.50+3)/2(100)÷(500)/2(0.5)÷(5.50)/20.10.045= - 2.22Price elasticity for demand curve D2 is as below:(225−200)÷(225+200)/2(2.50−3)÷(2.50+3)/2

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