# Economic Elasticity Problem

Our professional writers will address all you homework
requirements and provide a quality paper with guarantees of 100% plagiarism free.
We provide 24/7 customer Support.

### Order Research Paper In a Few Clicks

Get my paper done

By clicking “Get my paper done”, you agree to our terms of service and privacy policy. We’ll occasionally send you promo and account related emails.

## Economic Elasticity Problem

Economic Elasticity Problem 1) What is the own-price elasticity of demand for p = 100 – 5q, at q = 10; at q = 5; at q = 12? 2) What is the own-price elasticity of demand for p = a – bq? (Show the elasticity as an expression depending on the value of q.) 3) Show the budget line for p1 = 5, p2 = 10, and m = 150 in a figure. (pi = price of good i; m = income). 4) For the numbers in 3), what can you say about the purchases of goods x1 and x2 if the bundles (x1, x2) available are , a) (16; 7) b) (8: 8) c) (10; 10) d) (14; 9) 5) For the situation in 3), show

## Economic Elasticity Problem

1) What is the own-price elasticity of demand for p = 100 – 5q, at q = 10; at q = 5; at q = 12?

2) What is the own-price elasticity of demand for p = a – bq? (Show the elasticity as an expression depending on the value of q.)

3) Show the budget line for p1 = 5, p2 = 10, and m = 150 in a figure. (pi = price of good i; m = income).

4) For the numbers in 3), what can you say about the purchases of goods x1 and x2 if the bundles (x1, x2) available are ,

a) (16; 7)

b) (8: 8)

c) (10; 10)

d) (14; 9)

5) For the situation in 3), show graphically what if p1

a) increases to 8;

b) decreases to 4.

c) for the increase of p1 to p1 = 8, can the consumer still afford any of the consumption bundles in 4)?

6) For p1 = 5 and p2 = 10, what happens of income increase from m = 150 to m = 180? Show the change in a figure.