(1) The price of a large pizza decreased from $17.00 to $13.00. As a result, the quantity demanded of skateboards increased from 240.00 to 260.00.
a. Using the midpoint formula, what is the percentage change observed for the price of a large pizza? Give your answer to two decimal places.
b. Using the midpoint formula, what is the percentage change observed for the quantity demanded of skateboards? Give your answer to two decimal places.
c. What is the cross-price elasticity of demand between pizzas and skateboards? Give your answer to two decimal places.
(2) A 40% increase in price led the quantity supplied of bicycles in a competitive market to increase from 300.00 to 330.00.
a. What is the price elasticity of supply for bicycles?
(3) At a price of $300, a cell phone company manufactures 100000 phones. At a price of $400, the company produces 300000 phones.
a. What is the price elasticity of supply? (Round your answer to two decimal places.)