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2. Suppose the demand curve for widgets might be expressed as P = 55-O.5Q. a. Over what price range is demand for widgets own-price elastic?

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2. Suppose the demand curve for widgets might be expressed as P = 55-O.5Q. a. Over what price range is demand for widgets own-price elastic? [2.5 marks] b. Over what price range is demand for widgets own-price inelastic? [2.5 marks] c. Suppose the own-price elasticity of demand for widgets is -1.12. If price increases by 5%, by how much would the quantity demanded change? Show your work. [3 marks]

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