1Additional Problem 1: Elasticity1.Given :PA = Price of good A QA= Quantity of good A QB= Quantity of good B QC= Quantity of good C QD= Quantity of good D I = Consumer’s income PAQAQBQCQDI $10 5 10 10 10 $5,000 $8 6 10 6 12 $6,000 (a)Calculate the price elasticity of demand for good A. (Include the formula you utilized for this calculation.) (b)Calculate the cross elasticity of demand for good D with respect to good A.
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