1. Calculate the Elasticity of Demand: (02 Marks)

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

ii. Calculate the Elasticity of Demand, when; (02 Marks)

P1= $ 6, Q1= 13 units

P2= $ 6.75, Q2= 11 units

iii. Consider the market for lobsters. You study survey data and observe that if lobsters Price is $5/kg, then 100 kilograms lobsters are demanded. You also observe that if lobsters Price is $3/kg, then 200 kilograms lobsters are demanded. Whether the demand for lobsters elastic or inelastic? What will be the Price Elasticity of demand for lobsters? (03 Marks)

iii. Identify the Price Elasticity of Demand & Product Type for the items given below: (03 Marks)

S. No. Items Elasticity of Demand, Product Type

1 Coca-Cola

2 Tea Whitener

3 Contact Lenses

4 Electricity

5 Drinking water

6 Flour