ECON203
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
_____