Worksheet 1 Econ 2000 20 points Name Instructions: Write out each of the 4 complete formulas, one for each of the rst 4 questions. Show your work for each calculation, then answer the interpretation question at the end of each. 1. (4 points) Price Elasticity of Demand. Before: P=2; Qd = 8; After: P =4; Qd =2. Elastic or inelastic? 2. (4 points) Income Elasticity of Demand. Before: I=100, Qd = 3; After: I =200; Qd =5. Normal good? 3. (4 points) Cross-price Elasticity of Demand. Before: Pgood A=5, Q good 3 =4; After: Pgood A =3; Q good 3 =6. Answer this: Are these goods substitutes or complements? 4. (4 points) Elasticity of Supply. Before: P=5; QS = 8; After: P =3; QS =6. Elastic or inelastic