MGE Notes answers Sep 20, 2017 .pdf

MGE Notes answers Sep 20, 2017 .pdf - Q-4?M The general...

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Unformatted text preview: Q-4(?M\ The general demand curve for good X lS Q= 1009:)!> + .001M and Income (M) IS currently equal to m 20, 000. 'TR1\ OI GT H350 E\.‘*‘.~ ?.¢A\.— 93.- } ulcvt ms¥;m:$tg MRI-O VI *"‘1 ’\03* ‘ W TR {‘3 vhn \E‘=\ MR<D 'Tfiv es 6.» lawns. Pm»— 54 Lulv" Q“°°‘ ‘1°?\. aI\(zo.oI.> Q1|1D-1°3 +-—J rcc." Ila-I—J GUIUQ Fe 9-.030. ~—-—-.‘..m,u- 4......2 M... Ma: 6-. ‘05. Whfi'.:~“ "V‘R'I— E -. b 9/0 I II 4 IIaII I::I:IIIII En ‘ - no ( I...) -‘ -7. .1 OLD/. 0) l'IlIl‘lII'A‘. aIIIaIIIIII Ea: . I “ '- 1 III“IIBE\‘IIIIIIII 2‘ = . mot AD 112:?» Q II IIIIIZSSIIIIIIIII l _ I-‘IIII'ZI INIIIIII IIIII “3 ‘ A a. fill II'AKII IIl‘I IIIIIIII mm IIIInIIIIIIuIIIIIIII we» 3; IIquIIIIIIIIIIIIIII IIImIIIIIIIIuIIIIIII muIIIIIIIImIIIIIII "III-IIIIIIIIIIIII III-III II “Ill-II nIIIIII II “II-Ill uIIIIIIIII IIISREE I. .fllfl’ !:=:!’= Ii. BIB. I I! IIIIII IIIIIIIIII Prudgoodxwm‘!) PM A 5. Panel A shows how the demand for good X shifts when income increases from $33,000 to $35,000. When the price of good X is $75, what is the income elasticity of demand? Is good X a normal or inferior good? _._, .4 \_4;__. ‘ flas‘u). " . __\_____..+e| Eu‘ AM ‘2: <33.~°°~3f.°") *b" \sz-Gf:°f 6. Panel B shows how the demand for good X shifts when the price of related good Y decreases from $80 to $60. When the price of good X is $75, what is the cross-price elasticity of good X and good Y? Are goods X and Y complements or substitutes? ._ AG“ 3 (Moo-4r“) 'Io Exw‘. .—-—__—-——.—-—:_.g° A?1 Q’ - (“Q-2°) 4.1.0 ) con-eh. - '3‘: P‘l T .5 (13¢ ...
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