An economist doing an analysis on the market for original paintings finds that an increase in price of6% will lead to an increase in the quantity supplied by 8%.

Instructions:Round your answer to two decimal places.

a. What is the price elasticity of supply?

b. The price elasticity of supply is said to be

multiple choice

• inelastic.
• unit-elastic.
• elastic.

A 10% decrease in the price of gas grills leads to anincrease of16% in the demand for flank steaks.The cross-price elasticity of demand between gas grills and flank steaks is

multiple choice

• 1.6.
• -0.63.
• 0.63.

-1.6.