1. Using the formula for elasticity we have described in class, calculate the price elasticity of demand when a price of a phone charger dropped from P500 to P400 and the quantity demand increases from 5,000 units to 6,000 units. Find the elasticity of demand. (solve with 4 decimal places). Is the demand elastic or inelastic?

2. Normal good is a good for which the demand increases as income increases and decreases as income falls. What will be the effect to the demand curve when income increases if the good is normal?

Group of answer choices

a. demand curve shifts to the right

b. demand curve shifts to the left

c. an upward movement in the along the demand

3. An inferior good is a good for which the demand decreases as income rises, and increases as income falls ( ex. when income increases you won't like instant noodles anymore since you would go for better and nutritious option given income increased). What will happen to the demand curve if there is an increase in income if the good is inferior?

Group of answer choices

a. demand curve shifts to the right

b. demand curve shifts to the left

c. demand curve moves up along the curve

d. demand curve moves down along the curve