Q1. Jerry drives up to a gas station. Before looking at the price, he places an order and says, "I'd like $10 of gas." What is Jerry's price elasticity of demand (in absolute value)? 0.5,1 Or infinity? The answer would be zero if he did not care for the cost, but since he is limited by $10, what is the answer?
Q2. Consider a college town where the initial price of apartments is $400 and the initial quantity is 1000 apartments the price elasticity of demand for apartments is 1.0 and the price of elasticity of supply is of apartment is 0.50 use the demand and supply curve to show the initial equilibrium point a?