EC-EX (ECONOMICS EXERCISES)

Elasticity
"I listen and I forget . . . I see and I remember . . . I do and I understand"

1. The demand curve for electricity is given by the equation: Qd x = - 2Px + 11. What is the arc price elasticity of
demand for electricity when price is between P1 and P2? Between P4 and P5?
2. Suppose that your income elasticity of demand for books is -2.5 while your income elasticity of demand for
gadgets is 3.0. If your income increases by 10% next year, what will be the effect to your quantity of books and
gadgets purchased?
2. If the arc price elasticity of demand for solution sets to a math problem set is 0.50. About how large a price
change will be required to reduce the consumption of a math problem set by 1%? If the original price was
P97.04, how much is the new price?
3. Assuming that demand for donuts are as follows:
Price 8 7 6 5 4
Quantity 300 400 500 600 700
** What is the arc price elasticity of demand when price is between P7&P8? Between P5&P6? Between P4&P5?

"Men ought always to pray and not faint….."

Luke 18:1 TCO/vsl
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EC-EX (ECONOMICS EXERCISES)
Elasticity
"I listen and I forget . . . I see and I remember . . . I do and I understand"

1. The demand curve for electricity is given by the equation: Qd x = - 2Px + 11. What is the arc price elasticity of
demand for electricity when price is between P1 and P2? Between P4 and P5?
2. Suppose that your income elasticity of demand for books is -2.5 while your income elasticity of demand for
gadgets is 3.0. If your income increases by 10% next year, what will be the effect to your quantity of books and
gadgets purchased?
2. If the arc price elasticity of demand for solution sets to a math problem set is 0.50. About how large a price
change will be required to reduce the consumption of a math problem set by 1%? If the original price was
P97.04, how much is the new price?
3. Assuming that demand for donuts are as follows:
Price 8 7 6 5 4
Quantity 300 400 500 600 700
** What is the arc price elasticity of demand when price is between P7&P8? Between P5&P6? Between P4&P5?

"Men ought always to pray and not faint….."

Luke 18:1 TCO/vsl
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
EC-EX (ECONOMICS EXERCISES)
Elasticity
"I listen and I forget . . . I see and I remember . . . I do and I understand"

1. The demand curve for electricity is given by the equation: Qd x = - 2Px + 11. What is the arc price elasticity of
demand for electricity when price is between P1 and P2? Between P4 and P5?
2. Suppose that your income elasticity of demand for books is -2.5 while your income elasticity of demand for
gadgets is 3.0. If your income increases by 10% next year, what will be the effect to your quantity of books and
gadgets purchased?
2. If the arc price elasticity of demand for solution sets to a math problem set is 0.50. About how large a price
change will be required to reduce the consumption of a math problem set by 1%? If the original price was
P97.04, how much is the new price?
3. Assuming that demand for donuts are as follows:
Price 8 7 6 5 4
Quantity 300 400 500 600 700
** What is the arc price elasticity of demand when price is between P7&P8? Between P5&P6? Between P4&P5?

"Men ought always to pray and not faint….."

Luke 18:1 TCO/vsl