#1Based on the determinants of elasticity as discussed in the text, explain what the price...

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#1Based on the determinants of elasticity as discussed in the text, explain what the price elasticity of demand of the following products would be: (a) ballpoint pens; (b) Crest toothpaste; (c) diamond rings; (d) sugar; and (e) refrigerators.(a) Ballpoint pens:(b) Crest toothpaste:(c) Diamond rings:(d) Sugar:(e) Refrigerators:#2Using the demand data given, complete the following table by computing total revenue at each of the prices.Indicate whether demand is elastic, inelastic, or unitary between each set of prices.  	 		 			Price 			Quantity demanded 			Total revenue 			Character of demand 		 		 			$1000 			300 			 $_____ 			 		 		 			 			 			 			__________ 		 		 			900 			400 			 _____ 			 		 		 			 			 			 			__________ 		 		 			800 			500 			 _____ 			 		 		 			 			 			 			__________ 		 		 			700 			600 			 _____ 			 		 		 			 			 			 			__________ 		 		 			600 			700 			 _____ 			 		 		 			 			 			 			__________ 		 		 			500 			800 			 _____ 			 		 		 			 			 			 			__________ 		 		 			400 			900 			 _____ 			 		 		 			 			 			 			__________ 		 		 			300 			1000 			 _____ 			 		 		 			 			 			 			__________ 		 		 			200 			1100 			 _____ 			 		 		 			 			 			 			__________ 		 		 			100 			1200 			 _____

David · Accepted Answer

ECON203 
Graded Activity 2
#1 
Based on the determinants of elasticity as discussed in the text, explain what the price elasticity 
of demand of the following products would be:  (a) ballpoint pens; (b) Crest toothpaste; (c) 
diamond rings; (d) sugar; and (e) refrigerators.
(a) Ballpoint pens:   
 
Answer:
There are many substitutes to Ball point pens as there are many brands of ballpoint pens; also it 
can be substituted with ink pen or simply with writing pad. So it is likely to have an elastic 
demand. 
(b) Crest toothpaste:   
 
Answer: 
Crest toothpaste is just a one brand of toothpaste. However, there are many companies making 
toothpastes. This means there are substitute to Crest toothpaste.

#1 Based on the determinants of elasticity as discussed in the text, explain what the price elasticity of demand of the following products would be: (a) ballpoint pens; (b) Crest toothpaste; (c)...

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Price	Quantity demanded	Total revenue	Character of demand
$1000	300	$_____
__________
900	400	_____
__________
800	500	_____
__________
700	600	_____
__________
600	700	_____
__________
500	800	_____
__________
400	900	_____
__________
300	1000	_____
__________
200	1100	_____
__________
100	1200	_____