topic: Elasticity of Demand and Supply

Problem #1: The accompanying table gives part of the supply schedule for personal computers in the United States. Price of Computer Quantity of Computers Supplied $ 900 a 000 12 000 1. Calculate the price elasticity of supply when the price increases from $900 to $1,100 using the midpoint method. Problem #2: Calculate the elasticity between and between points G and H shown in the gure below: \"50 . .1411 em I H l'm'kn sum . o \\w r, . u' mm we: ' . ' I llll'ujl ' . - [z n w: . H'lig'H ' l I U .mm. _ [ . mom: T'l ." 5m - 0 3mm: I'm 2 am 3900 3 3m 0 Figure 1. Calculating the Price Elasticity of Demand Problem #3: From the data shown in the gure about demand for smart phones. calculate the price elasticity of demand from: point B to point C and point D to point E. Classify the elasticity at each point as elastic, inelastic, or unit elastic. Points Price Quantity Demanded A 70 3 000 B 80 2 800 C 90 2 400 D 100 2 200 E 1 10 2 000