Fill out the tables by calculating the price elasticity of demand and of supply (use the mid-point formula). Report elasticities with 2 decimals. Demand and Supply Schedule for Good X: Unit price of x Quantity demanded of x Quantity supplied of x Price elasticity of demand of x (2 decimals) Price elasticity of supply of x (2 decimals) $100 0 5 n/a n/a $95 2 4.5 $90 4 4 $85 6 3.5 $80 8 3 $75 10 2.5 $70 12 2 $65 14 1.5 $60 16 1 $55 18 0.5 Demand and Supply Schedule for Good Y: Unit price of y Quantity demanded of y Quantity supplied of y Price elasticity of demand of y (2 decimals) Price elasticity of supply of y (2 decimals) $100 10 40 n/a n/a $90 11 35 $80 12 30 $70 13 25 $60 14 20 $50 15 15 $40 16 10 $30 17 5 $20 18 1 $10 19 0 Critically analyze the sign and the magnitude of the calculated elasticities and give examples of goods whose elasticities might be as those calculated. Justify why you considered those examples.
Fill out the tables by calculating the
Demand and Supply Schedule for Good X:
|
Unit price of x |
Quantity demanded of x |
Quantity supplied of x |
Price elasticity of demand of x (2 decimals) |
Price elasticity of supply of x (2 decimals) |
|
$100 |
0 |
5 |
n/a |
n/a |
|
$95 |
2 |
4.5 |
|
|
|
$90 |
4 |
4 |
|
|
|
$85 |
6 |
3.5 |
|
|
|
$80 |
8 |
3 |
|
|
|
$75 |
10 |
2.5 |
|
|
|
$70 |
12 |
2 |
|
|
|
$65 |
14 |
1.5 |
|
|
|
$60 |
16 |
1 |
|
|
|
$55 |
18 |
0.5 |
|
|
Demand and Supply Schedule for Good Y:
|
Unit price of y |
Quantity demanded of y |
Quantity supplied of y |
Price elasticity of demand of y (2 decimals) |
Price elasticity of supply of y (2 decimals) |
|
$100 |
10 |
40 |
n/a |
n/a |
|
$90 |
11 |
35 |
|
|
|
$80 |
12 |
30 |
|
|
|
$70 |
13 |
25 |
|
|
|
$60 |
14 |
20 |
|
|
|
$50 |
15 |
15 |
|
|
|
$40 |
16 |
10 |
|
|
|
$30 |
17 |
5 |
|
|
|
$20 |
18 |
1 |
|
|
|
$10 |
19 |
0 |
|
|
Critically analyze the sign and the magnitude of the calculated elasticities and give examples of goods whose elasticities might be as those calculated. Justify why you considered those examples.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
