1of1 1. Explain the term Price Elasticity ofDemand. When the price of a commodity rises from $10 to $20, the quantity demanded falls from 16 units to 14. Calculate the price elasticity of demand using the average price method. . What are the principal determinants of the Price Elasticity of Demand? Provide an example in each case. . Many economists have argued that one of the results of technological innovation is that wage inequality has increased. What is their basis for believing this? What are the likely effects of innovation in the labor markets for low-skill and high-skill workers in the US. economy? . Explain why we expect the price elasticities of supply and demand to increase over time. . If the government imposed a federal interest rate ceiling of 20% on all loans, who would gain and who would lose? Explain your answer. Why would a government take such an action? WM 0143