PROBLEMS

PROBLEM 1
• The schedule below Price(in No of
shows number of Rs) packs
packs of bread demanded
bought at each day
at variety prices 16 300
14 600
12 900
10 1200
8 1500
6 1800
• Plot the demand curve for packs of
bread
• Calculate price elasticity of demand if
price of demand decreases from Rs
12 to Rs 10
 PROBLEM 2
• Given Demand function Q=20-5P

Estimate elasticity of both functions at

P=2 and P=3
 PROBLEM 3
Price(in Rs) Quantity demanded of
Rose Plants
100 300

150 240

200 150

250 100

300 50
• Calculate Price elasticity of demand
for rose plants when price increases
from Rs 150 to Rs 200 and also state
the type of elasticity of demand
• Calculate Price elasticity of demand
for rose plants when price increases
from Rs 100 to Rs 150 and also state
the type of elasticity of demand
 PROBLEM 4
• Consider a demand function Q=600-
4P.
Find
• Quantity Demanded at Price=20Rs
• Price to sell 400 units
• Price if quantity Demanded is zero
• Quantity Demanded at price=0Rs
 PROBLEM 5
• Consider a graph function
Q=8-0.5p
• Find Price elasticities at K,L,M
 PROBLEM 6
• Find cross price elasticity of demand
between Hotdogs(X) and
Hamburgers(Y) and between
Hotdogs(X) and Mustard(Z) from
table given below
 PROBLEM 7
• Consider demand function for
microwave oven
Qx=250-10Px+5Py+15I
Where Qx=50
Px=10
Py=20
I=10,000
Find
• Cross price elasticity
• What would be percentage change in
demand for good ‘X’ if there is 10%
increase in price of good ‘Y’
 PROBLEM 8
• 50 units of Quantity are demanded
at Price of 30Rs/unit.A reduction in
Price of Rs 10 results in increase of
Quantity demanded to 70 units.Find
price elasticity of demand
• By what % would quantity demanded
reduce amount if there is 10% rise in
price.
THANK YOU