ECON203 Graded Activity 2 #1 Based on the determinants
Caiden
activity2.docxECON203
Graded Activity 2
#1
Based on the determinants of elasticity as discussed in the text, explain what the price elasticity of demand of the following products would be: (a) ballpoint pens; (b) Crest toothpaste; (c) diamond rings; (d) sugar; and (e) refrigerators.
(a) Ballpoint pens:
(b) Crest toothpaste:
(c) Diamond rings:
(d) Sugar:
(e) Refrigerators:
#2
Using the demand data given, complete the following table by computing total revenue at each of the prices.
Indicate whether demand is elastic, inelastic, or unitary between each set of prices.
|
Price |
Quantity demanded |
Total revenue |
Character of demand |
|
$1000 |
300 |
$_____ |
|
|
|
|
|
__________ |
|
900 |
400 |
_____ |
|
|
|
|
|
__________ |
|
800 |
500 |
_____ |
|
|
|
|
|
__________ |
|
700 |
600 |
_____ |
|
|
|
|
|
__________ |
|
600 |
700 |
_____ |
|
|
|
|
|
__________ |
|
500 |
800 |
_____ |
|
|
|
|
|
__________ |
|
400 |
900 |
_____ |
|
|
|
|
|
__________ |
|
300 |
1000 |
_____ |
|
|
|
|
|
__________ |
|
200 |
1100 |
_____ |
|
|
|
|
|
__________ |
|
100 |
1200 |
_____ |
|
