The accompanying table represents the price and yearly quantity sold of ice cream cones on Sidfield Island.
|
Price of Ice Cream Cones
|
Quantity of Ice Cream Cones Demanded
|
|
$1
|
3000
|
|
$2
|
2400
|
|
$3
|
1600
|
|
$4
|
800
|
a. Using the midpoint method (show your work), Determine the price elasticity of demand when the price of an ice cream cone increases from $1 to $2. What does this estimate imply about the price elasticity of require for ice cream cones?