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@@assignment Elasticity

This document contains questions about calculating price elasticity of demand for various goods based on percentage changes in price and quantity demanded. It asks the student to identify whether the goods in each situation are elastic, unitary elastic, or inelastic, and to judge whether sample products would generally be elastic or inelastic based on their characteristics. It also contains questions about calculating elasticity based on price and quantity changes for specific goods like shoes, gas, and fidget spinners.

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70 views2 pages

@@assignment Elasticity

This document contains questions about calculating price elasticity of demand for various goods based on percentage changes in price and quantity demanded. It asks the student to identify whether the goods in each situation are elastic, unitary elastic, or inelastic, and to judge whether sample products would generally be elastic or inelastic based on their characteristics. It also contains questions about calculating elasticity based on price and quantity changes for specific goods like shoes, gas, and fidget spinners.

Uploaded by

Abhishek
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd

Name___________ Assignment-Elasticity

Q1. Calculate values of Price Elasticity for all the situations below:

Price Quantity % change in quantity % change in Elasticity of


Initial New Initial New demanded price Demand

25 30 100 40 1. ___________

40 70 120 90 2. ___________

200 220 80 64 3. ___________

50 75 150 135 4. ___________

Q2. In each case identify whether you would describe it as elastic / unitary elastic / inelastic
1. _________________________ 2. _________________________
3. _________________________ 4. _________________________

Q3. Judge the products in the table below to decide whether you think they will be elastic or inelastic:

Product Elastic or inelastic? Why?

Salt

Hawaiian Vacation

Apple iPhone

Cigarettes

Tap Water

Gasoline

Dasani Water

Cooking oil

Heart medication

Oriental rugs

Chocolate
'Heinz' baked beans
Q4. At a price of $300.00 the quantity demanded is 100 pairs of the new Yeezy shoes. Kanye West
decides to drop the price of his shoes to $200 and suddenly the quantity demanded jumps up to
150 pairs of shoes. Are the shoes an elastic or inelastic good?

Initial Price:
Initial Quantity Demanded:
New Price:
New Quantity Demanded:

Is the good Elastic or Inelastic? (Circle One)


Value:

Q5. At a price of $3.00 the quantity supplied is 2000 gallons. Hurricane Harvey comes through and
gas prices rise to $4.00. Now the quantity supplied is 4000 gallons. In this example an elastic or
inelastic commodity?

Initial Price:
Initial Quantity Supplied:
New Price:
New Quantity Supplied:

Is the good Elastic or Inelastic? (Circle One)


Value:

Q6. The new price of fidget spinners is $5.00 and at this price the quantity demanded is 1500.
Originally however, the fidget spinner sold for $10.00 and the quantity demanded was 1200

Initial Price:
Initial Quantity Demanded:
New Price:
New Quantity Demanded:

Is the good Elastic or Inelastic? (Circle One)


Value:

Q7. Yesterday, the price of envelopes was $3 a box, and Julie was willing to buy 10 boxes. Today, the
price has gone up to $3.75 a box, and Julie is now willing to buy 8 boxes. Is Julie's demand for
envelopes elastic or inelastic? What is Julie's elasticity of demand?

Q8. Katherine advertises to sell cookies for $4 a dozen. She sells 50 dozen, and decides that she can
charge more. She raises the price to $6 a dozen and sells 40 dozen. What is the elasticity of
demand?

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