1) Based in the demand schedule shown in the table, answer the following questions: Demand schedule for Burgers a) Draw the demand curve labeling all scenarios
b) Calculate the elasticity of demand when the price decreases from $9 to $8 and explain it. c) Calculate the elasticity of demand from scenario E to F and explain it.
d) In both of the above situations, the price decreased in $1 and the quantity demanded increased in 2 units. Explain the reason why both elasticities are not equal.
e) Draw a table adding a column in which you include the revenue at each scenario.
f) Draw a graph showing in the horizontal axis the quantity of burgers demanded per hour and in the vertical axis the Total Revenue.
g) Can you identify a relation between elasticity and revenue? [4 points]

2) If the price elasticity of demand is unit elastic how does quantity demanded change in response to a 25 percent increase in price? Choose 1
a) Quantity demanded increases by 50%
b) Quantity demanded decreases by 50
c) Quantity demanded decreases by 25%
d) Quantity demanded doesn’t change.
e) Quantity demanded increases by 25%

3) What happens to price elasticity of demand as the price of a good increases along a linear demand curve? Choose 1
a) Price elasticity of demand stays the same.
b) Price elasticity of demand increases.
c) Price elasticity of demand decreases then increases.
d) Price elasticity of demand decreases.
e) Price elasticity of demand increases then decreases.

4) Gas prices rose by 12% following a hurricane in the Gulf of Mexico. As a result, the amount of gas purchased in the week fell by 3% percent following the price increase. What is the price elasticity of demand for gas in the week following the price increase? Choose 1
a) 2,5
b) 0,25
c) 4
d) 0,5
e) 0,75

5) When the price of fuzzy blankets decreased by 10%, Mr. Fields bought 20%, percent more fuzzy blankets. What is Mr. Fields’ price elasticity of demand for blankets? Choose 1
a) inelastic
b) perfectly inelastic
c) Elastic
d) perfectly elastic
e) unit elastic
6) When the price of spicy sauce was $10, 10 people bought 100 jars. When the price increased to $12, 12, people only bought 40 jars. What is the price elasticity of demand for spicy sauce? Choose 1
a) 3
b) 0.33
c) 0.98
d) 7.5
e)−8.98

7) Susan's Shellfish Shack increased the price of their shrimp sandwiches by 10%, and her total revenue increased 20%. Based on this information, what can we conclude about shrimp sandwiches? Choose 1
a) Consumers consider shrimp sandwiches luxuries.
b) Consumers consider shrimp sandwiches necessities
c) Consumers have an infinite elasticity of demand for shrimp sandwiches.
d) Consumers have a unit elastic demand for shrimp sandwiches.
e) Consumers think shrimp sandwiches and crab sandwiches are substitutes

8) Indicate whether the following statements are true or false. Explain.
a) The price elasticity of demand for apples is 3. If price increases, the total revenue will triple.
b) If there is an increase in the price of bananas from $2 to $4, the quantity demanded decreases from 100 to 60. Therefore, total revenue will increase.
c) Mr. Walter wants to increase the total revenues of his business. He sells two products. Product A has an inelastic demand. When he decreased the price of product B his total revenue increased. If he decreases the price of product A he will increase his total revenue even more.
d) As prices of one good falls, its total revenue increases. That can only be possible if such good has an elasticity demand greater than 1.

9) Based on the following Supply graph for apple market, answer the questions indicated below. Price $ per ton 10 8 6 4 2 1 2 3 4 Q per day
a) Draw the supply schedule table.
b) Calculate price elasticity of supply from point A to point B and explain it
c) Calculate price elasticity of supply from point B to point C and explain it [1,2 points]

10) When the price of pickles increased 20%, the quantity supplied of pickles increased 80%. What is the price elasticity of supply and how is that value interpreted? Choose 1
4; elastic.
0.25; normal good
4; inelastic
0.25; inelastic
6; elastic