Refer to the accompanying table.
a.Calculate the price elasticity of demand when the price rises from $450 to $550 for an individual income of $20,000.
b.Is demand elastic or inelastic? Explain your answer to the elasticity of demand you calculated in part (a)and include the mathematical equation used to find it.
Definitions:
Ordered Pairs
A pair of elements arranged in a specific order, typically (x, y), representing coordinates on a Cartesian plane.
Function
A mathematical relation between a set of inputs and a set of possible outputs, where each input is related to exactly one output.
Evaluate
The process of determining the value of an algebraic expression by substituting numbers into the variables and performing the operations.
Function
A link between a group of inputs and a set of possible outputs, ensuring that every input matches precisely one output.
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