Unit 2:  Supply and Demand:  Topic 2.3  Elasticity of Demand Practice Problems

Directions:

1)  Take your cursor and draw a
straight black line STARTING
ON THE OUTSIDE OF THE
RED BORDER.

2)  Label the line D (for
demand) by drawing INSIDE
THE RED BORDER.

3)  Drag the TWO YELLOW
DOTS onto the D line.

4)  Draw a line starting INSIDE  
THE RED BORDER indicating
the P and Q at that point on the
graph.

4)  Calculate the price elasticity
of demand by plugging in the
correct P and Qd and changes
in P and Qd inside the simple
price elasticity formula to the
right.

5)  Determine if the price
elasticity of supply is elastic,
unit elastic, or inelastic.