Year 9 - Economics - 18-2-16

Thai Sikh International School

E-Learning Programme – Online Assignment –dd/mm/yyyy

Name :                                                                                                         Subject :  Economics

Year  :            9                                                                                       ScheduleNo. : 7                     

1.In each of the following examples first calculate the PED and then decide if the PED is elastic, inelastic, perfectly elastic,perfectly inelastic or unity.

a.The price of a product falls from $10 to $8 causing demand to extend from 20,000 to 18,500.

b.Demand contracts from 500 to 300 when price rises from 20$ to 22$.

c.Demand extends from 3,000 to 3500 when price falls from 30$ to 18$.

d.Price rises from 10$ to 20$ but demand stays unchanged at 5000.

e.An increase in price from 40$ to 50$ and as a consequence a decrease in quantity demanded from 600 to 500.