demand characterizes the demand for goods and services produced by individual companies in an demand characterizes the demand for goods and services produced by all firms in industry; while that industry. O Increasing; decreasing Price elastic; price inelastic Price sensitive; price insensitive Price inelastic; price elastic O Price insensitive; price sensitive.

QUESTION 2 Assume the demand function is: Q = 100-2P What is the price elasticity of demand over the $30 to $40 range of the demand curve (please use the midpoint formula and insert your solu QUESTION 3 True or False. The solution to Question 2 is considered elastic. O True False QUESTION 4 Assume the demand function is: Q = 100-2P What is the price elasticity of demand over the $10 to $20 range of the demand curve (please use the midpoint formula and insert your solu QUESTION 5 True or False. The solution to Question 4 is considered elastic. O True O False Click Save and Submit to save and submit. Click Save All Answers to save all answers.

Assume that the price of product Y decreases by 5% and the quantity supplied decreases by 2%. The coefficient of price elasticity of supply for good Y is: a. negative and therefore Y is an inferior good b. more than one and therefore supply is elastic c. less than one and therefore supply is inelastic d. negative and therefore the supply curve is downsloping. O O O O

2. Consider a competitive market for which the quan- tities demanded and supplied (per year) at various prices are given as follows: PRICE (DÖLLARS) DEMAND (MILLIONS) SUPPLY (MILLIONS) 60 22 14 80 20 16 100 18 18 120 16 20 a. Calculate the price elasticity of demand when the price is $80 and when the price is $100. b. Calculate the price elasticity of supply when the price is $80 and when the price is $100. c. What are the equilibrium price and quantity? d. Suppose the govemment sets a priceceiling of $80. Will there be a shortage, and if so, how large will it be?