E. personal computers or IBM personal computers

23.You are the owner of the Canteen on campus in SDU, and you know that the price elasticity of demand for your pizza is 0.5. What will happen to your total revenue from your pizza sales if you raise your prices? Prove your answer on the graph.

24. Use the graph shown to answer the following questions. Put the correct letter in the blank. Be ready to explain why. (Do not just memorize the answers)

a. The elastic section of the graph is represented by section _______.

b. The inelastic section of the graph is represented by section _______.

c. The unit elastic section of the graph is represented by section _______.

d. The portion of the graph in which a decrease in price would cause total revenue to fall would be _________.

e. The portion of the graph in which a decrease in price would cause total revenue to rise would be _________.

f. The portion of the graph in which a decrease in price would not cause a change in total revenue would be _________.

g. The section of the graph in which total revenue would be at a maximum would be _______.

h. The section of the graph in which elasticity is greater than 1 is _______.

i. The section of the graph in which elasticity is equal to 1 is ______.

j. The section of the graph in which elasticity is less than 1 is _______.

25.There two formulas to calculate the price elasticity of demand/supply. Show both of them with numbers and prove which one is better and why?

Price elasticity of demand=PCQ \ PCP

Price elasticity of demand =(Q2-Q1)/[(Q2+Q1)/2(P2-P1)/[(P2+P1)/2]

26.What is the price elasticity of supply? What are the determinants of the price elasticity of supply, and how does each affect elasticity?

price elasticity of supply a measure of how much the quantitysupplied of a good responds to achange in the price of that good,computed as the percentage changein quantity supplied divided by the

percentage change in price.

Дата добавления: 2015-07-25