Summary: Elasticity W GA Table Of Contents X Ull supplies. As a result, U.D. supplies uleineu gasvine wop iv peacein. a. If gasoline was selling for $2.85 per gallon before the cutoff, how much of a price Contents Bookmarks Recent increase would you expect to see in the coming months? Critical Thinking Questions b. Suppose that the government imposes a price ceiling on gas at $2.85 per gallon. ( 0 > How would the relationship between consumers and gas station owners 6: Household Behavior and Consumer Choice (Part II: The change? Q Market System) 2.9 Describe what will happen to total revenue in the following situations. > 6 Appendix: Indifference Curves a. Price decreases and demand is elastic. b. Price decreases and demand is inelastic. 7: The Production Process: The Behavior of Profit- c. Price increases and demand is elastic. 10 Maximizing Firms d. Price increases and demand is inelastic. > 7 Appendix: Isoquants and Isocosts e. Price increases and demand is unitary elastic. f. Price decreases and demand is perfectly inelastic. > 8: Short-Run Costs and Output Decisions g. Price increases and demand is perfectly elastic. AA 2.10 > 9: Long-Run Costs and Output Decisions Using the midpoint formula and the following graph, calculate the price elasticity of demand when the price changes from $3 to $8 and when the price changes from $8 to > 9 Appendix: External Economies and Diseconomies $14. > 10: Input Demand: The Labor and Land Markets 11: Input Demand: The Capital Market and the Investment Decision 14 Hide