3. The gure to the right illustrates the demand for taxi rides in a large city. Suppose the price per ride is initially $25 but then falls to $5 due to a recession. What is the price elasticity of demand for taxi rides? Using the midpoint formula, the price elasticity of demand is . (Enter your response rounded to two decimal pie ces.) Demand is (1) IIIIIIIII '3' g '2 s 3 2 a 'o 3 -E D. .I I I I I I I I I I IIIIIIIIII 0 40.000 30.000 120.000 160.000 200.000 240.000 Quantity (taxi rides per day) (1) O elastic O unit-elastic O inelastic 4. In fall 2006, Pace University in New York raised its annual tuition from $24,800 to $29,250. Freshman enrollment declined from 1,475 in fall 2005 to 1,160 in fall 2006. Assuming that the demand curve for places in the freshmen class at Pace did not shift between 2005 and 2006, use this information to calculate the price elasticity of demand'. Use the midpoint formula in your calculation. Source: Karen W. Arenson, "At Universities, Plum Post at Top Is Now Shaky," New York Times, January 9, 2007. The price elasticity of demand for Pace University for the fall of 2006 is . (Hint: include the negative sign and enter your response rounded to two decimal places.) The demand for places in Pace's freshman class is price (1) 1: Definition Price elasticity of demand The responsiveness of the quantity demanded to a change in price, measured by dividing the percentage change in the quantity demanded of a product by the percentage change in the product's price. (1) O elastic O unit-elastic O inelasticJ a a 12. Suppose the price of tires increases from $50 per tire to $90. In response, the quantity of tires supplied increases from 40,000 to 45,000 tires. What is the price elasticity of supply for tires? Using the midpoint formula, the price elasticity of supply is . (Enter your response rounded to two decimal places.)