5. Given the demand for a product as Qd = 100 – 5p and the supply as Qs = -20 + 3p, you are told equilibrium is obtained at the point where Qd = Qs. The equilibrium price for the product is a) R5 b) R6.67 c) R15 d) R20 6. You are given the following information about demand for potatoes Price per kg Quantity demanded (kg) R30 1 000 R32 850 Using the midpoint method, calculate the price elasticity of demand for the R30 to R32 price range. The price elasticity pf demand for potatoes is a) 0.26 b) 1.00 c) 2.25 d) 2.51 7. If bread and butter are complements in consumptions, which of the following could be the cross price elasticity of demand for bread and butter? a) -1 b) c) +1 d) +2

5. Given the demand for a product as Qd = 100 – 5p and the supply as Qs = -20 + 3p, you are told equilibrium is obtained at the point where Qd = Qs. The equilibrium price for the product is a) R5 b) R6.67 c) R15 d) R20 6. You are given the following information about demand for potatoes Price per kg Quantity demanded (kg) R30 1 000 R32 850 Using the midpoint method, calculate the price elasticity of demand for the R30 to R32 price range. The price elasticity pf demand for potatoes is a) 0.26 b) 1.00 c) 2.25 d) 2.51 7. If bread and butter are complements in consumptions, which of the following could be the cross price elasticity of demand for bread and butter? a) -1 b) c) +1 d) +2

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter5: Elasticity Of Demand And Supply

Section: Chapter Questions

Problem 1.1P: (Calculating Price Elasticity of Demand) Suppose that 50 units of a good are demanded at a price of...

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