ECON201-HW#5

Refer to Figure 5-14. What is the price elasticity of supply when price changes from $100 to $220? (round up your result to two decimal place)

0.46

Refer to Figure 5-1. If point A is moving to point B, price elasticity of demand is equal to (round up your result to two decimal place)

2.33

Good Price Elasticity of Demand A. 1.9 B. 0.8 Refer to Table 5-1. ^ Which of the following is consistent with the elasticities given in Table 5-1?

A is a luxury and B is a necessity

Refer to Figure 5-1. Between point A and point B on the graph, demand is

elastic, but not perfectly elastic

The value of the price elasticity of demand for a good will be relatively large (i.e., more elastic) when

the good is a luxury rather than a necessity

The price elasticity of supply measures how much

the quantity supplied responds to changes in the price of the good

As the price elasticity of supply approaches infinity, very small changes in price lead to

very large changes in quantity supplied