10 Suppose the price elasticity of supply of tomatoes as measured on a given day in July is Interpret this number 11 The price elasticity of supply for child-care workers was reported to be quite high, about What will happen to the wages of child-care workers as demand for them increases, compared to what would happen if the measured price elasticity of supply were lower? 12 The Case in Point on cigarette taxes and teen smoking suggests that a higher tax on cigarettes would reduce teen smoking and premature deaths Should cigarette taxes therefore be raised? NUMERICAL PROBLEMS Economist David Romer found that in introductory economics classes a 10% increase in class attendance is associated with a 4% increase in course grade [2] What is the elasticity of course grade with respect to class attendance? Refer to Figure 5.2 "Price Elasticities of Demand for a Linear Demand Curve" and Using the arc elasticity of demand formula, compute the price elasticity of demand between points B and C Using the arc elasticity of demand formula, compute the price elasticity of demand between points D and E How the values of price elasticity of demand compare? Why are they the same or different? Compute the slope of the demand curve between points B and C Computer the slope of the demand curve between points D and E Attributed to Libby Rittenberg and Timothy Tregarthen Saylor URL: http://www.saylor.org/books/ Saylor.org 283