elast1 - (Include formula.) (c) Classify goods A and C....

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
1 Additional Problem 1 : Elasticity 1. Given : P A = Price of good A Q A = Quantity of good A Q B = Quantity of good B Q C = Quantity of good C Q D = Quantity of good D I = Consumer’s income P A Q A Q B Q C Q D I $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.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: (Include formula.) (c) Classify goods A and C. Explain the relationship, if any, between these two goods. (d) Calculate the income elasticity for good C. (Again, include the appropriately specified formula.) (e) Classify good B as it relates to the consumers income. Explain how you reached this conclusion. 2...
View Full Document

This note was uploaded on 10/26/2009 for the course ECON 180-004-20 taught by Professor Bresnock during the Fall '09 term at UCLA.

Page1 / 2

elast1 - (Include formula.) (c) Classify goods A and C....

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online