# The Arc Elasticity Of Demand

Use the following demand schedule to answer the question parts below.

Point

Price

Quantity Demanded

Quantity Supplied

A

\$10

150

975

B

\$9

200

800

C

\$8

230

650

D

\$7

260

500

E

\$6

275

410

F

\$5

300

300

G

\$4

320

200

H

\$3

350

150

I

\$2

400

120

J

\$1

500

100

1. Calculate the arc elasticity of demand between each point and its neighbor (that is, from A to B, B to C, etc.) and determine whether each value is price elastic, price inelastic, or unit elastic
2. Calculate the arc elasticity of supply between each point and its neighbor (that is, from A to B, B to C, etc.) and determine whether each value is price elastic, price inelastic, or unit elastic
3. Calculate the arc elasticity of demand between A and F, A and D, and A and B and determine whether each value is price elastic, price inelastic, or unit elastic
4. Calculate the arc elasticity of supply between A and F, A and D, and A and B and determine whether each value is price elastic, price inelastic, or unit elastic