Worksheet 1 Econ 2000 20 points Name Instructions: W'rite out each of the 4 complete formulas, one for each of the rst 4 questions. Show your work for each calculation, then answer the interpretation question at the end of each. l. (4 points) Price Elasticity of Demand. Before: P22. 0.1 = 3; After: P =4; 0.1 =2. Elastic or inelastic? 2. (4 points) Income Elasticity of Demand. Before: lIOD. Qd 3: After: I '200; 0.3 '5. Normal good? 3. (4 points) Crossprice Elasticity of Demand. Before: PgmMS. Q good 13 4: After: Pgmm 3; 0 good 3 6. Answer this: Are these goods substitutes or complements? 4. (4 points) Elasticity.r of Supply. Before: P=5. Q. = 8: After: P =3; Q3 =6. Elastic or inelastic? The correct answer is worth one point for each ofthe following: 5. Price Elasticity of Demand. Before: P=5, Qd = 4; After: P =3; 0.1 =6. Elastic or inelastic? 6. Income Elasticity of Demand. Before: 1:100. 0.1 = 5: After: I =2OD; Q; ;3_ Normal? 7. Cross-price Elasticity of Demand. Before: Pgmd _.\\=5. Q good 5 =4; After: Pgm _.s. =3; Q good B =6. Substitute? 8. Elasticity of Supply. Before: P=I. Q. = 4: Atter: P =3: 0: =16. Elastic or inelastic