The following graph will represent U.S. dollars on the y-axis and lbs. on the x-axis.
Good X
1) Refer to the figure above. Calculate the price elasticity when more producers expect prices to increase tomorrow leading to a decrease of 4 lbs. in the Good X market.
A) EpD = 1.91
B) EpS = 0.94
C) EpD = 0.94
D) EpS = 1.91
2) From number 15 (point B), calculate the price elasticity when a hurricane strikes leading to a 1 lb. decrease in the Good X market.
A) EpD = 2.90
B) EpS = 0.34
C) EpD = 0.34
D) EpS = 2.90
3) From number 16 (point C), calculate the price elasticity when Americans prefer Good X by 2 lbs.
A) EpD = 0.18
B) EpS = 5.56
C) EpD = 5.56
D) EpS = 0.18