These questions are from Microeconomics, and are from elasticity.

The questions are based off of Elasticity and Introductory to Concepts and production costs.

3. Use supply and demand curves to clearly show the impact on the market for each of the following situations. (2 marks) a. The effect on the market for satellite T.V. if b the price of cable T.V. decreases? What is the impact on the market if there is higher prices for grazing land on the production of wool? P P Q Q 4. Calculate the supply elasticity coefficient if the price of smart phones goes from $400 to $250 and there is a decrease in the supply of smart phones from 3.5 million to 2.0 million per month. (3 marks) 5. Calculate the demand elasticity coefficient if the average price of houses in Oshawa rose from $548000 to $652000, and as a result the quantity of houses sold increased from 1200/month to 1325/month. (2 marks) b. What does this suggest about the product? (1 mark)