week 5 elasticity of demand n supply

Question 1

what is elasticity?

Answer 1

numerical measures of responsiveness of quantity demand or quantity supply to one of its determinant eg. measure demand to a change in price

Question 2

Price elasticity formula

Answer 2

Price elasticity= percentage change in qd/ percentage change in price

Question 3

calculating percentage change in Elasticity using mid point

determinant of price elasticity

Answer 3

percentage change=end value-start value/mid point value x100

mid point value is any number between start value and end value

Question 4

Price elasticity of supply?

Answer 4

Measure the responsiveness of quantity supplied to its determinant eg. price

Question 5

Price elasticity use the same formula of demand
=change of percentage in quantity supply/change of percent in price
to find change of percentage, use the mid point formula, end value-start value/midpoint x 100

Answer 5

c