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    The document provides economics homework questions calculating price elasticity of demand (PED) in various scenarios: 1) PED is calculated and demand determined to be elastic or inelastic for cases where price changes cause changes in demand. 2) PED is calculated for luxury goods where a price rise causes demand to fall. 3) An advanced question asks to determine the expected price increase percentage given a PED range and a reduction in quantity from import restrictions.

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    The document provides economics homework questions calculating price elasticity of demand (PED) in various scenarios: 1) PED is calculated and demand determined to be elastic or inelastic for cases where price changes cause changes in demand. 2) PED is calculated for luxury goods where a price rise causes demand to fall. 3) An advanced question asks to determine the expected price increase percentage given a PED range and a reduction in quantity from import restrictions.

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    9 views1 page

    Economics Homework 5.6

    Uploaded by

    Joycee
    The document provides economics homework questions calculating price elasticity of demand (PED) in various scenarios: 1) PED is calculated and demand determined to be elastic or inelastic for cases where price changes cause changes in demand. 2) PED is calculated for luxury goods where a price rise causes demand to fall. 3) An advanced question asks to determine the expected price increase percentage given a PED range and a reduction in quantity from import restrictions.

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    Economics homework 5.

    1. In each case, first calculate PED and then decide if the demand is price elastic or price
    inelastic.

    a a fall in price from $4 to $3 causes the demand to extend from 60 to 105.

    b demand falls from 200 to 180 when price rises from $10 to $12.

    c a reduction in price from $12 to $6 results in an extension in demand from 100 to 140.

    2. Demand for a luxury product falls from 500 to 200 when price rises from $2000 to $2200.

    a calculate the PED.

    b in this case, by what percentage would demand contract, if the price rose by 1%?

    3 . Advanced question （拔高题，不会可以不做）

    In order to encourage the development of domestic （ 国 内 的 ） petrol industry, country X


    decided to restrict（限制）petrol imports. These measures would reduce the petrol quantity by
    20%. What percentage was the expected price increase if the value of PED was between 0.8-1.4?

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