Assume the following:

Function A: [Q₀=1, P₀=5] and [Q₁=2, P₁=1]

Function B:[Q₀=1, P₀=1] and [Q₁=5, P₁=2]

- What is the numerical elasticity of Function A? Blank 1. Fill in the blank, read surrounding text. - What is the verbal description of the elasticity of Function A? Blank 2. Fill in the blank, read surrounding text. - Does Function A represent a necessity or luxury? Blank 3. Fill in the blank, read surrounding text. - What is the numerical elasticity of Function B? Blank 4. Fill in the blank, read surrounding text. - What is the verbal description of elasticity for Function B? Blank 5. Fill in the blank, read surrounding text. - Function B represents a decreasing cost industry. (True/ False?) Blank 6. Fill in the blank, read surrounding text. - Is Function A more likely a supply or demand curve? Blank 7. Fill in the blank, read surrounding text. - Is Function B more likely a supply or demand curve?