Solve the following problems. Show your solutions. Suppose that the demand and supply for Maria's shirts are as follows: PRICE QUANTITY DEMANDED QUANTITY SUPPLIED P8 40,000 20,000 10 32,000 30,000 12 24,000 45,000 14 16,000 50,000 16 8,000 63,000 a. Calculate price elasticity of demand and supply as the price of shirts increase from P12 to P14. b. Calculate income elasticity of demand as income increases from P50,000 to P58,000 if the price is P10 and P12, respectively.

Solve the following problems. Show your solutions. Suppose that the demand and supply for Maria's shirts are as follows: PRICE QUANTITY DEMANDED QUANTITY SUPPLIED P8 40,000 20,000 10 32,000 30,000 12 24,000 45,000 14 16,000 50,000 16 8,000 63,000 a. Calculate price elasticity of demand and supply as the price of shirts increase from P12 to P14. b. Calculate income elasticity of demand as income increases from P50,000 to P58,000 if the price is P10 and P12, respectively.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

100%

Suppose that the demand and supply for Maria's shirt are as follows;

1. calculate price elasticity of demand and supply as the price of shirts increase from 12 to 14

ACTIVITY NO. 2
Solve the following problems. Show your solutions.
Suppose that the demand and supply for Maria's shirts are as follows:
PRICE
QUANTITY DEMANDED
QUANTITY SUPPLIED
P8
40,000
20,000
10
32,000
30,000
12
24,000
45,000
14
16,000
50,000
16
8,000
63,000
a. Calculate price elasticity of demand and supply as the price of shirts increase from P12 to P14.
b. Calculate income elasticity of demand as income increases from P50,000 to P58,000 if the price
is P10 and P12, respectively.

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