MICROECONOMICS – SHORT EXERCISE TOTAL EXPENDITURE CALCULATION

At a price of $445 customers purchase 1050 new computers. If the price goes up to $515, customers purchase 1010 computers. USING THE TOTAL EXPENDITURE CALCULATION, determine if this price range is across the elastic, unit elastic or inelastic region of the demand curve. Show your work. USING THE ELASTICITY OF DEMAND FORMULA FOR THIS QUESTION WILL NOT RECEIVE CREDIT.

DUE FOR TONIGHT (02/10/2013 AT 23:59)