1 Price elasticity of demand Suppose the demand for good X is given as Q = 500 - 5P a) What is the price elasticity of demand when P=207 b) What is the marginal revenue when Q = 300? 2 Price elasticity of supply Find n when Qs = 100 + 10P and Q = 300. ECON 302 TPS Page 2 3 Income elasticity of demand and Engel curves a) Explain how you would calculate the income elasticity of demand from an Engel curve. b) If an Engel curve for good X is backward bending between an income of 100 and 200, what does that say about the consumer's view of good X in that income range? Be sure to use vocabulary that is associated with income elasticity