The accompanying table gives part of the supply and demand schedule for
personal computers in HK.
Price($) / Quantity of computers supplied / Quantity of computers demanded
$11,000 / 12,000 / 10,000
$ 9,000 / 8,000 / 13,000
(a) Calculate the price elasticity of supply when the price increases from
$9,000 to $11,000.
(b) Calculate the price elasticity of demand when the price decreases from
$11,000 to $9,000
(c) Suppose firms produce 1,000 more computers at any given price due to
improved technology. As price increases from $9,000 to $11,000, is the
price elasticity of supply now greater than, less than, or the same as it
was in part (a)?
(d) Suppose consumers buy 2,000 less computers at any given price when
price increases from $9,000 to $11,000, is the price elasticity of demand
now greater than, less than, or the same as it was in part (b)?
(e) Suppose a longer time period under consideration means that the quantity
supplied at any given price is 20% higher than the figures given n the
table. As price increases from $9,000 to $11,000, is the price elasticity of
supply now greater than, less than, or the same as it was in part (a)?