1-Using the midpoints method, calculate the price elasticity of demand of Good X using the following information: When the price of good X is $50, the quantity demanded of good X is 400 units. When the price of good X rises to $60, the quantity demanded of good X falls to 300 units.
The price elasticity of demand for good X = 0.64.
The price elasticity of demand for good X is 1.75
The price elasticity of demand for good X = 1.57.
The price elasticity of demand for good X = 1.23.
2-If demand deceases and supply remains constant, what happens to the market equilibrium?
Quantity and price both fall.
neither price or quantity will change
Quantity rises and price falls.
Quantity and price both rise
3-In a market with relatively inelastic demand, if the supply curve shifts due to a fall in production costs, the equilibrium price will ________ by ________ than equilibrium quantity.
Question 24 options: