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Unformatted text preview: (c) The income elasticity of demand for Caribbean cruises. Sign = + for superior / normal |E I | > 1 Elastic, not necessities, substitution available. (d) The elasticity of supply of gasoline. Sign = + for supply |E P | < 1 Inelastic, necessity, few substitutes. (e) The cross elasticity of demand for corn ready to be popped with respect to the price of popcorn machines. Sign = - for complements |E X,Y | > 1 Elastic, not necessities, substitutions available....
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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.
- Fall '09