Answer and Explanation:
A. Price elasticity of demand
Price(P0) = $80 , Q0 = 20
Price(P1) = $100 , Q1 = 18
Price elasticity of demand =
Price elasticity of demand = 0.47
B. Price elasticity of supply
Price(P0) = $80 , Q0 = 16
Price(P1) = $100 , Q1 = 18
Price elasticity of supply =
Price elasticity of supply = 0.53
C. The point , where Demand and supply is equal called equilibrium price
So , $100 is equilibrium price.
D. if market price is less then equilibrium price , it is effective So, shortage (20-16) 4 units