Q10. Monthly demand and supply schedule for t-shirts are given by: Price 8 7 6 5 4 3 2 1 Quantity Demanded 6 8 10 12 14 16 18 20 Quantity Supplied 18 16 14 12 10 8 6 4 Income 100 150 200 250 300 350 400 450 a) What is the Price Elasticity of Demand for a price change from $7 to $5? Is it elastic or inelastic? (Use the Arc Elasticity Formula) b) What is the Price Elasticity of Supply for a price change from $7 to $5? Is it elastic or inelastic? (Use the Arc Elasticity Formula) c) Using Total Revenue, is demand elastic or inelastic for a price change from $4 to $3?
Q10. Monthly
|
|
8 |
7 |
6 |
5 |
4 |
3 |
2 |
1 |
|
Quantity Demanded |
6 |
8 |
10 |
12 |
14 |
16 |
18 |
20 |
|
Quantity Supplied |
18 |
16 |
14 |
12 |
10 |
8 |
6 |
4 |
|
Income |
100 |
150 |
200 |
250 |
300 |
350 |
400 |
450 |
a) What is the
b) What is the Price Elasticity of Supply for a price change from $7 to $5? Is it elastic or inelastic? (Use the Arc Elasticity Formula)
c) Using Total Revenue, is demand elastic or inelastic for a price change from $4 to $3?
d) What is the Income Elasticity of Demand for t-shirts when income decreases from $300 to $250? (Use the Arc Elasticity Formula)
NOTE: If you have restrictions answering all of them, please answer C&D only.
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
