Homework answers / question archive / Suppose that your demand schedule for DVDs is as follows: Price Quantity Demanded (income = $10,000) Quantity Demanded (income = $12,000) $8 40 DVDs 50 DVDs $10 32 45 $12 24 30 $14 16 20 $16 8 12 a

Suppose that your demand schedule for DVDs is as follows: Price Quantity Demanded (income = $10,000) Quantity Demanded (income = $12,000) $8 40 DVDs 50 DVDs $10 32 45 $12 24 30 $14 16 20 $16 8 12 a

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Suppose that your demand schedule for DVDs is as follows:

a. Calculate the price elasticity of demand as the price of DVDs increases from $8 to $10 if (i) your income is $10,000 and (ii) your income is $12,000.

b. Calculate your income elasticity of demand as your income increases from $10,000 to $12,000 if (i) the price is $12 and (ii) the price is $16.