CALABANGA COMMUNITY COLLEGE

MICROECONOMICS
A/Y 2020
Activity

Name: ________________________________ Date: ______________

Check Your Progress

1. Graphically show the effect of an increase in price of Coca Cola on the

demand of Pepsi Cola.
2. If the price elasticity of a commodity is -5, what will be the change in
the quantity demanded of the commodity as a result of a 4 % rise in the
price of this commodity?
3. Interpret the expression: "The cross price elasticity of demand between
two commodities A and B is equal to 3". What can you say about the
two commodities?
4. Explain the difference between arc elasticity of demand and point
elasticity of demand.