5. To determine the effect of an event on a given market, which of the following is a necessary step? Repeat as necessary for multiple events. All of the above. Decide whether event shifts S curve, D curve, or both. Decide in which direction curve shifts.

6. The demand for tennis rackets has decreased from 550 to 450 units ever since the price has increased from 40 to 60 USD. What is the price elasticity of demand of tennis rackets? 0.5 2 1 0.2

7.

Desktop computers have a price elasticity of supply of 1. What type of supply curve does this correspond to? Inelastic supply Unit elastic supply Elastic supply Perfectly inelastic supply

8. Joe is the CEO of Cup of Joe Coffee, a local coffee place on Washington Square. The price of coffee beans has just decreased and at the same time more people have switched from coffee to tea due to tea's greater health benefits. What does Joe expect to happen to price and quantity of coffee? Unit elastic supply Q rises, but effect on P is ambiguous Q falls, but effect on P is ambiguous P falls, but effect on Q is ambiguous

Please show work and give calclation for qs 6