the percentage change in interest rates.

Self-Check Questions

1. From the data in Table 5.5 about demand for smart phones, calculate the price elasticity of demand from:

point B to point C, point D to point E, and point G to point H. Classify the elasticity at each point as elastic,

inelastic, or unit elastic.

Points

P

Q

A

B

C

D

E

F

G

H

60

3,000

70

2,800

80

2,600

90

2,400

100 2,200

110 2,000

120 1,800

130 1,600

TABLE 5.5
134 5 • Review Questions

2. From the data in Table 5.6 about supply of alarm clocks, calculate the price elasticity of supply from: point

J to point K, point L to point M, and point N to point P. Classify the elasticity at each point as elastic,

inelastic, or unit elastic.

Point Price Quantity Supplied

J

K

L

M

N

P

$8

$9

50

70

$10

80

$11

88

$12

95

$13

100

TABLE 5.6

3. Why is the demand curve with constant unitary elasticity concave?

4. Why is the supply curve with constant unitary elasticity a straight line?
{"title": "Principles of Microeconomics 3e", "file_name": "Microeconomics3e.pdf", "file_size_mb": 26.99, "file_hash": "830b81f41611ac67a490444dbb5d6aed292224606965b06965b914443c93331a", "creator": "PDFMiner", "batch_upload": true, "total_pages": 597, "source": "downloads\\business\\economics\\Microeconomics3e.pdf", "moddate": "2022-12-07T14:23:05-06:00", "uploaded_via": "batch_uploader", "upload_timestamp": "2026-02-07T15:37:44.339247", "file_type": ".pdf", "producer": "Prince 14.2 (www.princexml.com)", "creationdate": "2022-12-07T14:15:44-06:00", "source_file": "downloads\\business\\economics\\Microeconomics3e.pdf"}