Homework 5
Elasticities
ANSWERS
1. From point B to point C, price rises from $70 to $80, and Qd decreases from
2,800 to 2,600. So:
The demand curve is inelastic in this area; that is, its elasticity value is less than
one.
Answer from Point D to point E:
, The demand curve is inelastic in this area; that is, its elasticity value is less than
one.
Answer from Point G to point H:
The demand curve is elastic in this interval.
2. From point J to point K, price rises from $8 to $9, and quantity rises from
50 to 70. So:
Elasticities
ANSWERS
1. From point B to point C, price rises from $70 to $80, and Qd decreases from
2,800 to 2,600. So:
The demand curve is inelastic in this area; that is, its elasticity value is less than
one.
Answer from Point D to point E:
, The demand curve is inelastic in this area; that is, its elasticity value is less than
one.
Answer from Point G to point H:
The demand curve is elastic in this interval.
2. From point J to point K, price rises from $8 to $9, and quantity rises from
50 to 70. So:
