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Please help with the following questions (1-10),

For Questions 1-17 refer to below statement and demand and supply functions.

Suppose that demand and supply curves for avocado in Brooklyn are as the followings:

Qd = 144 - 24P

Qs= -36 + 12P

where Qd and Is are quantities demanded and supplied in tons respectively, and P is the price of avocado in dollars per kg?

1) If price elasticity of demand for avocado at price P* is equal to -2/3, how much is P*?

a) $2.00

b) $2.20

c) $2.40

d) $2.60

e) $2.80

2) What is quantity demanded at price P* at which price elasticity of demand for avocado equals -2/3?

1. 82.2 tons
2. 83.2 tons
3. 84.4 tons
4. 85.2 tons
5. 86.4 tons

3) If price elasticity of supply for avocado at price P* is equal to 2.5, how much is P*?

a) $2

b) $3

c) $4

d) $5

e) $6

4) What is quantity supplied at price P* at which price elasticity of supply for avocado equals 2.5?

1. 6 tons
2. 12 tons
3. 18 tons

1. 24 tons
2. 30 tons

5) What is market clearing equilibrium price and quantity in Brooklyn avocado

market?

1. $3; 20 tons
2. $4; 22 tons
3. $5; 24 tons
4. $6; 30 tons
5. $7; 30 tons

6) What is the price elasticity of demand if the avocado sells for $2 per kg?

a) -0.2

b) -0.5

c) -0.8

d) -1.2

e) -2

7) If the selling price of avocado is $3.00 per kg, the demand is

1. inelastic
2. elastic
3. unit elastic
4. perfectly elastic
5. perfectly inelastic

8) What is the price elasticity of demand if the avocado sells for $5.75

per kg?

a) -0.23

b) -2.3

c) -12.3

d) -22.3

e) - 23

9) If the selling price of avocado is $5.75 per kg, the demand is

1. inelastic
2. elastic
3. unit elastic
4. perfectly elastic
5. perfectly inelastic

10) If the selling price of avocado is $5.9999 per kg, the demand is

1. inelastic
2. elastic
3. unit elastic
4. perfectly elastic
5. perfectly inelastic

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