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Unit 2 Homework Assignment
Assignment 2 (50 points)
A. Airbags
B. Pencils
C. Cycle helmets
D. City streetlights
E.Contact lenses
Price
Quantity Demanded
Elasticity Coefficient
$25
20
20
40
15
60
10
80
5
100
What is the price elasticity of demand between:
A. P=$25 and P=$20?
B. P=$20 and P=$15?
C. P=$15 and P=$10?
D. P=$10 and P=$5?
A. Price falls, and demand is elastic.
B. Price rises, and demand is elastic.
C. Price falls, and demand is unitary elastic.
D. Price rises, and demand is unitary elastic.
E. Price falls, and demand is inelastic.
F. Price rises, and demand is inelastic.
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