Read each statement below and indicate if the price elasticity of demand for the product is most likely to be elastic and inelastic: i. Consumers have a preference for Kellogg’s Cornflakes ii. There are different brands of hard dough bread iii. A diamond Rolex watch

Question 2. Suppose that the price elasticity of demand for an ice cream cone is -1.9. If the local ice cream shop owner wants to increase total revenue, what would you recommend he or she do?

If the absolute value of elasticity of demand for chocolate is 0.64 then the demand for chocolate is considered: a. elastic b. inelastic c. unit elastic d. yummy elastic

Using the midpoint formula and the graph below, calculate the following:i. The price elasticity of demand when the price changes from 9 to 15; andii. The price elasticity of supply when the price changes from $4 to $9

e. Is the price elasticity of demand between $110 and $130 elastic, unit elastic, or inelastic? f. Will Erin's total revenue rise if she increases the price from $110 to $130?

Price Elasticity of Demand 1. For each of the following pairs of goods, identify the good that you would expect to be more elastic. Briefly explain your answers (1-2 sentences). a) Eggs versus butter. b) Speedboats versus lightbulbs. c) Orange juice in general versus Tropicana brand of orange juice. d) Trips by your Congressperson to D.C. versus vacation trips by you to Hawaii.

If the price elasticity of demand for T-shirts is 0.6, how should the producers of T-shirts change the price of T-shirts if they would like to increase total revenue? Explain with a diagram.