• 1. At a price of $3.50 Jane sells 150 bottles of water. At a price of $2.00, she sells 200 bottles. Is demand elastic or inelastic?

• 2. if price elasticity of demand for calculators is .60, a 20% decrease in price will lead to .........................% ................. (Increase or decrease?) sales.

• 3. Demand for calculators is Q = 1500- 3P. Calculate the point price elasticity of demand at a price of $140 per unit.

• 4. At what price range is demand: a) elastic b) inelastic? ( 20points )

Price	Q	Ep	Elastic or inelastic or unitary elastic?
$10	10
8	20
6	30
4	40
2	50
1	60