What determines whether your demand is elastic

Reference no: EM131088158

1. When the price of souvenir t-shirts increased from $10 to $11, the quantity of t-shirts demanded decreased from 100 to 87 a week. Using theMid-Point Method(page 99), what is the price elasticity of demand for the t-shirts? Explain why the demand is elastic or inelastic (not just that it is greater or less than one, but what about them makes the demand elastic or inelastic)?Show your work. If you are unsure about how to determine percentages, review the appendix to Chapter One. Name a product you regularly purchase for which you have an inelastic demand and one for which you have an elastic demand. What determines whether your demand is elastic or inelastic for these products?

Reference no: EM131088158

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