When supply decreases, we expect equilibrium price to ________ and equilibrium quantity to _______.
Suppose Demand is given by Q = 100 -5P. What is the price elasticity of demand when P = 10?
-1/2
-5
-2
-1/5
None of these
When the price of a slice of pizza is $1.75, quantity demanded is 400. When the price per slice falls to $1.50, quantity demanded increases to 600. What is the absolute value of the price elasticity of demand?
2.60
0.384
0.20
0.076