PUSHED BEYOND THE LIMIT?
First, find the limit of each problem. Put the answers in order from least to greatest, using the
letter corresponding with the problem. If a limit does not exist, it will go at the END. There are
four that DNEyou must put them in
Answers to Problems and Application Sets in Chapter Five (Questions 2, 3, 5, 6, 8, 9, 10,
11, 12, 13 and 14).
2. a. For business travelers, the price elasticity of demand when the price of tickets rises
from
$200 to $250 is [(2,000 1,900)/1,950]/[(250 200
Answers to Problem and Application Sets in Chapter 4 (Questions 4, 5, 6, 7 and 10)
4. Technological advances that reduce the cost of producing computer chips represent a decline in an
input price for producing a computer. The result is a shift to the righ
Answers to Problems and Applications Sets in Chapter 6 (Questions 2, 3, 4, 5,
6, 7, 8, 9 and 11)
2.
a.
The imposition of a binding price floor in the cheese market is shown in Figure 1. In the
absence of the price floor, the price would be P1 and the quan