Micro Unit 2.4 CW: Elasticities and Applications (MS)

Last updated 10 months ago

1 Asɛmmisa

Quantity Demanded per Month
Price
Quantity Supplied per Month
30
$8
44
36
7
38
42
6
30
50
5
20
Check all statements for which you agree.

The equilibrium price of this product is somewhere between $6 and $7.
The demand for this product is elastic in the $8 to $7 price range.
The supply of this product is inelastic in the $6 to $5 price range.
At a price of $8, Qs>Qd.
At a price of $5, Qs>Qd.
Qs and Qd are equal somewhere between $6 and $7.
Between $5 and $6, the price elasticity of demand coefficient is approximately 0.96.
Between $6 and $7, the price elasticity of supply coefficient is approximately 0.046.
As prices rise, demand becomes more price inelastic.
As prices rise, supply becomes more price elastic.