Note: by: Previous price/ quantity *(inc) (dec)

to: used the present price or quantity as stated

PRICE ELASTICITY F DEMAND

1. Aling Lita sells alcohol for P180.00 and her Qas 300. When she decides to sell

it for P220.00, her Qaz becomes 250.

a Should Aling Lita sell the alcohol at P180.00 or P220.00?

b. Is Quantity demanded elastic or inelastic? (Show your solution)

2. f Angela sells cloth mask For P25.00 per pc, the demand for it is 800 when she

raises it by P10.00, the quantity demanded diminishes by 200.

a At what price will Theresa maximize her profit 2 (Compute for Total

Revenue to Compare the profit).

b. Is the demand elastic or inelastic?

3. Coco sells ice buko for P10.00 per pack and gets 500 packs quantity

demanded. However, if he lowers the price to P6.00, quantity demanded triples.

a. Is the demand for ice buko elastic or inelastic?

b. At what price will Coco get higher revenue?

INCOME ELASTICITY OF DEMAND

4. Every month, Daniela earns P15,000.00 as sales agent. During this period, she

consumes P800.00 worth of rice. When her income increased by P5,000.00, she

began lessening her monthly consumption of rice to P550.00 From the given, is

rice a normal, inferior or a common good for Daniela?

5. Romina earns a monthly salary of P10,000 and she consumes P900.00 worth of

beef per month. When her income increased to P12,000.00 she started to

consume P1,300.00 worth of beef per month. Is Romina's demand for beef normal,

inferior, necessity or luxury?

Submit your answer on or before March 29 via emails kcpanes19@qmail.com