1. The price of Good X increased from $200 to $250. As a result, the quantity demanded of Good X decreased from 1,000 units to 800 units.What is the own-price elasticity of Good X (Calculate it using the midpoint formula)? Is the Good X elastic, inelastic, or unit elastic?
2. The price of Good Y decreased from $600 to $400. As a result, the quantity demanded of Good Y increased from 100 to 200 units. What is the own-price elasticity of Good Y (Calculate it using the midpoint formula)? Is the Good Y elastic, inelastic, or unit elastic? As a result of the price change, does total revenue increase, decrease, or stay the same?
3. Jeremy's income increased from $60,000 per year to $90,000 per year. As a result, his quantity of Good Z demanded decreased from 20 units per week to 15 units per week.What is Jeremy's income elasticity for Good Z? Is Good Z normal or inferior for Jeremy?
4. The wage rate in Town A increased from $10 per hour to $12 per hour.As a result, the amount of people in the labor force increased from 1,000 to 1,500.What is the elasticity of labor supply in Town A?
5. A widget producer decreased his supply of widgets from 3 million to 1 million as a result of the market price of widgets decreasing from $6 to $3.What is the elasticity of supply for widgets for this producer?
6. The price of carrots increased from $2 per carrot to $3 per carrot.As a result, the quantity of mushrooms demanded increased from 10 pounds to 12 pounds. What is the cross-price elasticity of mushrooms and carrots?Are mushrooms and carrots substitutes or complements?
7. Maybel has $500 to spend on chairs and lamps for her new home.Each chair costs Maybel $100 and each lamp costs Maybel $50.Is it feasible for Maybel to buy 3 lamps and 2 chairs?If Maybel spends her entire budget on chairs, how many chairs could she buy? If Maybel's budget stayed the same and the price of lamps decreased by $10, then Maybel's real income _______(increases, decreases, or stays the same).