Temple University
Economics 51 and 52
08/16/10 03:38 PM
After filling in your answers and before clicking submit, you should print out this page for your records. You will need to bring it with you in the event that you believe you submitted the homework, but I don't record a grade for you.
The demand curve for Valentine's Day cards is shown below:
The picture is drawn to scale. That is, using your ruler carefully, you can find X,Y coordinates from the picture.
Hint #1: The price elasticity of demand is
Hint #2: The first hint can be rearranged to give
. On the right hand side you have the ratio of a particular P to a
corresponding Q times the inverse of the slope of the demand curve.