2. (a): On friday, the price and quantity demanded for petroleum product were $112 and 150,000 liter, respectively. Ten days later, the price and quantity demanded are $145 and 120000 liter, respectively. What is the price elasticity of demand? (b): What can you conclude about the price elasticity of demand in each of the following statements? i. . “The pizza delivery business in this town is very competitive. I’d lose half my customers if I raised the price by as little as 20%.” ii. “My economics professor has chosen to use the Mankiw textbook for this class. I have no choice but to buy this book.”
2. (a): On friday, the
and 150,000 liter, respectively. Ten days later, the price and quantity demanded are $145 and 120000 liter, respectively. What is the price elasticity of
(b): What can you conclude about the price elasticity of demand in each of the following statements?
i. . “The pizza delivery business in this town is very competitive. I’d lose
half my customers if I raised the price by as little as 20%.”
ii. “My economics professor has chosen to use the Mankiw textbook for this
class. I have no choice but to buy this book.”
iii. Lecture recordings or classical music recordings in general.
iv. Gold or water.
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