Question 1) Determine equilibrium price and quantity from supply and demand graphs and schedules.
Question 2) Define price elasticity of demand and compute the coefficient of elasticity given appropriate data on prices and quantities.
Question 3) Explain the meaning of elastic, inelastic, and unitary price elasticity of demand.
Question 4) Recognize graphs of perfectly elastic and perfectly inelastic demand.
Question 5) Use the total revenue test to determine whether elasticity of demand is elastic, inelastic, or unitary.
Question 6) List four major determinants of price elasticity of demand.
Question 7) Explain how a change in each of the determinants of price elasticity would affect the elasticity coefficient.
Question 8) Define price elasticity of supply and explain how the producer’s ability to shift resources to alternative uses and time affect price elasticity of supply.
Question 9) Explain cross elasticity of demand and how it is used to determine substitute or complementary products.
Question 10) Define income elasticity and its relationship to superior and inferior goods.
Question 11) Define ceiling price and floor price in relationship to the equilibrium price.
Question 12) Explain by examples the economic effects of price ceilings and floors.