Question: 1.Market demand is given as Q D = 220 - 4P. Market supply is given as Q S = 2P + 40. If price increases

1.Market demand is given as Q_D = 220 - 4P. Market supply is given as Q_S = 2P + 40. If price increases from $50 to $53, what is the price elasticity of demand?

a.0.1

b.1.0

c.12.0

d.14.7

2.Market demand is given as Q_D= 250 - 0.5P. Market supply is given as Q_S = 2P. If price increases from $385 to $390, what is the price elasticity of demand?

a.0.1

b.0.3

c.1.0

d.3.4

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