Q1) The price of TV increased by 10%. Then the quantity of TV demanded by 5%. What is the price elasticity of demand?
Q2) Gas price decreased 5%. Then, the quantity of gas demanded increased by 30%. What is the price elasticity of demand?
Q3) The price of air ticket to Honolulu increased from $100 to $125. Then, the quantity of ticket demanded decreased from 500 per day to 450 per day. What is the price elasticity of demand?
Q4) The price of ticket decreased from $125 to $100. Then, the quantity demanded increased from 450 to 500. What is the price elasticity of demand?
Q5) Derive the price elasticities of demand in Q3 and in Q4 by the mid-point method.