What is an example of Inelastic Supply? A consumer is willing to buy 200% more goods if the price goes down by 50%. OA Supplier is willing to sell 100% more goods if the price goes up by 10%. .A Supplier is willing to sell 10% more goods if the price goes up by 100%. ONA Supplier is willing to sell 10% more goods if the price goes up down by 100%.

Economists define normal goods as having a positive income elasticity. We can divide normal goods into two types: Those whose income elasticity is less than one and those whose income elasticity is greater than one. Think about products that would fall into each category. Can you come up with a name for each category?

Why is the demand curve with constant unitary elasticity concave?

Suppose the cross-price elasticity of apples with respect to the price of oranges is 0.4, and the price of oranges falls by 3. What will happen to the demand for apples?

The equation for a demand curve is P=483Q. What is the elasticity in moving from quantity of 5 to a quantity of 6?

The equation for a supply curve is 4P=Q. What is the elasticity of supply as price rises from 3 to 4? What is the elasticity of supply as the price rises from 7 to 8? Would you expect these answers to be the same?

The equation for a demand curve is P=2/Q. What is the elasticity of demand as price falls from 5 to 4? What is the elasticity of demand as the price falls from 9 to 8? Would you expect these answers to be the same?

Maria has decided always to spend one third of her income on clothing. a. What is her income elasticity of clothing demand? b. What is her price elasticity of clothing demand? c. It Marias tastes change and she decides to spend only one fourth of her income on clothing, how does her demand curve change? What is her income elasticity and price elasticity now?

Suppose you could buy shoes one at a time, miter than in pain. What do you predict the cross-price elasticity for left shoes and right shoes would be?

Why is the supply curve with constant unitary elasticity a straight line?