PROBLEM SOLVING:

1. The price of product A decreased from P60.00 to P40.00. The demand for

such product went up from 400 to 500 units. Calculate the price elasticity of

demand. Plot it in a single graph

2. The price of product C increased from P800.00 to P1,000.00. The demand

for product C went down from 6,000 units to 5,000 units. Compute for the

price elasticity of demand. Plot it in a single graph.

3. An increase in Jasmine's income from P9,000 to P9,500 causes her

demand for products to also increase from 600 to 700 units a month.

4. The price of sandwich spread increased from P90.00 to P160.00 per bottle. The demand

for bread went down from 10 units to 5 packs. Determine the cross elasticity of demand.

5. An increase in the price of good B from P40.00 to P45.00 caused the quantity supplied to

also increase from 260 to 400 units. Calculate the price elasticity of supplied. Plot it in a

single graph.

6. Pedro's income in January was P1,000 per week. In February, his income increased by

20% and this resulted to an increase in his demand for pork from 1 kilo to 1.5 kilos.

Determine the income elasticity.

7. Apples sell at the price of P100 per kilo. An increase in the price by 10% causes the

demand to decrease from 10 to 8 kilos. Compute the price elasticity of demand.

8. An increase in the price of product B from P100.00 to P150.00 cause the quantity

demanded for product A to decrease by 25% level of 800 units.

9. An increase in Aling Maria's income from P3,000 to P3,500 causes her demand for steak to

increase from 5 to 6 kilos a month.

10. Steak sells at a price of P50.00 per kilo. An increase in the price of steak by 10% causes

your demand to decrease from 10 to 8 kilos a month.