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Posted: April 10th, 2022
Calculate the elasticity of demand from point a to point b - Microeconomics
1. In the table below use the data about demands for stoves.
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Point |
Price |
Quantity Demanded |
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B |
$170 |
5,800 |
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C |
$190 |
5,200 |
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D |
$210 |
4,600 |
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E |
$230 |
4,200 |
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F |
$250 |
4,000 |
A) Calculate the elasticity of demand from point A to point B.
B) Calculate the elasticity of demand from point C to point D.
C) Calculate the elasticity of demand from point E to point F.
D) In addition, to each calculation, classify the elasticity at these points as elastic, inelastic, or unitarily elastic.
2. In the table below use the data about supply of dolls.
|
Point |
Price |
Quantity Supplied |
|
J |
$5 |
40 |
|
K |
$6 |
60 |
|
L |
$7 |
70 |
|
M |
$8 |
78 |
|
N |
$9 |
85 |
|
O |
$10 |
90 |
E) Calculate the elasticity of demand from point J to point K.
F) Calculate the elasticity of demand from point L to point M.
G) Calculate the elasticity of demand from point N to point O.
H) In addition, to each calculation, classify the elasticity at these points as elastic, inelastic, or unitarily elastic.
3. If the equation for a demand curve is P=45-3Q. What is the elasticity in moving from a quantity of 5 to a quantity of 6?
4. The equation for a demand curve is P=4/Q. What is the elasticity of demand as price falls from 5 to 4?
5. The equation for a supply curve is 2P=Q. What is the elasticity of supply as price rises from 3 to 4?
6. CenturyLink Field has 80,000 seats. What is the shape of the supply curve for tickets to football games at this stadium? Explain.
7. Would you expect supply to play a more significant role in determining the price of a basic necessity like food or a luxury item like a watch? Explain.
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