For Questions 1-11 refer to below statement and demand and supply functions.

Suppose that demand and supply curves for avocado in Brooklyn are as the followings: Qd = 72 12P Qs = -18 + 6P

where QD and QS are quantities demanded and supplied in tons respectively, and P is the price of avocado in dollars per kg? 1) If price elasticity of demand for avocado at price P* is equal to -2/3, how much is P*? a) $2.00 b) $2.20 c) $2.40 d) $2.60 e) $2.80 2) What is quantity demanded at price P* at which price elasticity of demand for avocado equals to -2/3? a) 42.2 tons b) 43.2 tons c) 44.2 tons d) 45.2 tons e) 46.2 tons

3) If price elasticity of demand for avocado at price P* is equal to -1.5, how much is P*? a) $3.00 b) $3.20 c) $3.40 d) $3.60 e) $3.80

4) What is quantity demanded at price P* at which price elasticity of demand for avocado equals to -1.5? a) 28.2 tons b) 28.4 tons c) 28.6 tons d) 28.8 tons e) 29.2 tons

5) If price elasticity of supply for avocado at price P* is equal to 2.5, how much is P*? a) $2 b) $3 c) $4 d) $5 e) $6

6) What is quantity supplied at price P* at which price elasticity of supply for avocado equals 2.5? a) 6 tons b) 12 tons c) 18 tons d) 24 tons e) 30 tons

7) What is market clearing equilibrium price and quantity in Brooklyn avocado market? a) $1; 60 tons b) $2; 48 tons c) $3; 36 tons d) $4; 24 tons e) $5; 12 tons

8) What is the total revenue created at market clearing equilibrium price and quantity in Brooklyn avocado market? a) $24000 b) $36000 c) $48000 d) $56000 e) $60000

9) What is the total amount of surplus if the price of avocado is $6.00 per kg in Brooklyn avocado market? a) 6 tons b) 9 tons c) 12 tons d) 15 tons e) 18 tons

10) What is the total amount of shortage if the price of avocado is $3.00 per kg in Brooklyn avocado market? a) 12 tons b) 24 tons c) 36 tons d) 48 tons e) 72 tons

11) While the avocado market is in equilibrium if avocado sellers decide to raise their prices by 2% above the market equilibrium price, what will happen to the percent change in quantity demanded? a) It will decrease by 5%. b) It will decrease by 10% c) It will decrease 15%. d) It will decrease by 20% e) It will decrease by 25%