Monday November 28

Today we finished the Elasticity worksheet and completed the questions below

Calculate the Elasticity of Demand and determine whether the demand is elastic, inelastic, or unitary elastic for the following questions

1. When price of a deluxe car wash rises from $10.00 to $11.00, the number of daily customers falls from 60-48.

2. A dentist with 80 patients cuts his fee for a cleaning from $60.00 to $54.00.  He now goes from 80 patients to 92.

3. An airline raises their baggage fees from $50 to $65, the number of flights drop from 100/day 88/day.

4. Price for a bushel of apples decreases from $4 to $3.  The number of bushels sold increases from 32-45.

5. A newsstand sells magazines for $2/magazine and will sell 100 at this price.  They raise their price 50% and in turn sell 50% less magazines.

6. Ashley raises the price in slices of pizza from $1.00 to $1.50; consequently she sells 3 slices instead of 4.