true or false?

10) Assume the demand and supply functions for good X can be written as

Qd = 1000 - 40Px

Qs = -200 + 20Px

In this example, equilibrium price is $20 and the equilibrium quantity is 200.

Answer:

11) The price elasticity of demand is measured as the percentage change in price divided by the percentage change in quantity demanded.

Answer:

12) When the percentage change in price is greater than the corresponding change in quantity demanded, demand is inelastic.