Question

5. If a price change from P = 100 to P = 80 leads to an increase in the quantity demanded from Q = 100 to Q = 150, the price elasticity of demand is which of the following? When calculating the percentages, use the original price/quantity values. a. -2/5 b. -5/2 c. -1/5 d. -5 6. A 10 percent increase in the world price of corn is associated in the short run is associated with a 5 percent increase in the quantity supplied. The elasticity of supply of corn is, a. -5 b..5

Answer 1

Price elasticity of demand- % A in Quantity demanded 6A in frice 150 - 100 80 - 100 100 50 20 - - 2.5 So connect answer is (6) Price elasticity of supply= % A in % A in 6 Quantity Price Supplied So correct answer is (6)

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