When the price of a hoola hoop is $10, 200 units are sold on the market.  When the price of a hoola hoop decreases to $8, 120 units are sold.   I. Calculate the price elasticity of demand at these price levels.   II. Does the law of demand hold? III. Is demand for hoola hoops elastic, inelastic, or unit elastic?

Answer the following questions in your own words. Start a new thread while replying. 1. What are the determinants of price elasticity of demand? Explain the determinants. 2. What is the difference between inelastic demand and elastic demand? Provide an example of each from real life. 3. Refer to the graph below: Price 22 20 + 18 +- 16 + 14 B 12 10 + 4 Demand +++ 100 200 300 400 500 600 700 800 900 Buaxtity From the graph above calculate: a. Price elasticity of demand from point A to point B (use the mid-point method). Is it an elastic situation or an inelastic situation? b. Price elasticity of demand from point B to point C (use the mid-point method). Is it an elastic situation or an inelastic situation?

do fast.

) Is the demand for tooth pick elastic or inelastic? Why? (the answer is from determinants of demand elasticity).

What is the primary determinant of the price elasticity of demand? A. The availability of substitutes B. The price level C. The income of consumers D. Government regulations

Use the mid-point method to calculate the elasticity.  1. If the price of tacos increases from $2.00 to $3.00 and the Quantity Demanded decreases from 20 to 10, what is the elasticity? 2. If the price of tacos increases from $2.00 to $3.00 and the Quantity Demanded decreases from 20 to 18, what is the elasticity? Explain your work.