Reference no: EM133083676

1. Donna, a highly motivated entrepreneur plans on applying for a business loan from Bank of America. She finds out that the percent change in price of business loans increased to 2% last month. This resulted in a 10% percent change in quantity demanded. What is the business loan's price elasticity?

2. Kelly, a bright college student finds out that the iPhone 12 was just launched this past week in Cupertino, CA. She along with the thousands of consumers plans on purchasing the iPhone 12 from Best Buy due to a price decrease from $899.99 to $649.99. Apple expects to see the quantity demanded for iPhone 12 to rise from 7 million to 10 million by the end of the year. What is the iPhone 12's elasticity of demand?

3. Alex is a terrific athlete as he is the captain of his basketball team. The championship game is this weekend, so he plans on buying new shoes for his entire team from Dick's Sporting Goods, but realizes that the price of a Nike Air Jordan shoe increased from $125.00 a pair to $150.00 a pair. Now, Alex only consumes 2 Nike Air Jordan shoes instead of his initial intent of purchasing 3 shoes. What is the price elasticity of demand for a Nike Air Jordan shoe?

4. Dell has gone through some market challenges these past few years, especially with the desktop market. If the prices of desktop computers decreases by 15% last quarter resulting in an increase of 7% in quantity demanded, then Dell will decrease the quantity supplied of desktops by 45%. What is the price elasticity of supply for Dell desktops?

5. The price of cell phones rose slightly higher from $600.00 to $750.00 this past month, and Samsung found out about Apple's release of the iPhone 12, so in turn it decided to increase production of its Note 20 from 450,000 to 550,000 to compete with its rival. What is the price elasticity of supply for Samsung Note 20 phones?