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  • Elasticity

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    Skylar Hsu
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    The document provides a demand and supply schedule for goods X, Y, Z, and W at various price points. It asks the reader to calculate the elasticity of demand for good X when the price increases from $6 to $8, which is -1 indicating unit elastic demand. It also asks the reader to calculate the total revenue of good W at a price of $4, which is $44. Finally, it asks whether the total revenue for good W increases or decreases when the price increases from $2 to $4, and whether the demand is inelastic, elastic, or unit elastic based on this change in revenue.

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    The document provides a demand and supply schedule for goods X, Y, Z, and W at various price points. It asks the reader to calculate the elasticity of demand for good X when the price increases from $6 to $8, which is -1 indicating unit elastic demand. It also asks the reader to calculate the total revenue of good W at a price of $4, which is $44. Finally, it asks whether the total revenue for good W increases or decreases when the price increases from $2 to $4, and whether the demand is inelastic, elastic, or unit elastic based on this change in revenue.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    9 views1 page

    Elasticity

    Uploaded by

    Skylar Hsu
    The document provides a demand and supply schedule for goods X, Y, Z, and W at various price points. It asks the reader to calculate the elasticity of demand for good X when the price increases from $6 to $8, which is -1 indicating unit elastic demand. It also asks the reader to calculate the total revenue of good W at a price of $4, which is $44. Finally, it asks whether the total revenue for good W increases or decreases when the price increases from $2 to $4, and whether the demand is inelastic, elastic, or unit elastic based on this change in revenue.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
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    Question

    Consider the following Demand and Supply Schedule for Parts a-e

    a. Calculate the elasticity of demand for good X when price increases from $6 to $8.
    Price of Quantity Quantity Quantity Quantity Quantity
    Item X Demanded Supplied of Demanded Demanded Demanded
    and of Item X Item X of Item Y of Item Z of Item W
    Item W
    $2 12 6 3 9 15
    $4 10 7 6 7 11
    $6 8 8 9 5 7
    $8 6 9 12 3 3
    $10 4 10 15 1 0
    Elasticity of demand is...

    a. =-1, unit elastic lol


    b. What is total revenue of good W at price $4?
    a. $44
    c. When the price increases from $2 to $4, total revenue for good W (increase/decrease)
    indicating that the demand is (inelastic/elastic/unit elastic) in this portion
    a. Total revenue for good W increases, indicating that demand is inelastic.

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