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. Using the data under D₁ and D2, calculate the cross elasticity of Ariya's demand for golf at all three prices. (To do this, apply the midpoints approach to the cross elasticity of demand.) At $50, cross elasticity = At $35, cross elasticity = At $20, cross elasticity = Is the cross elasticity the same at all three prices? (Click to select) ✓ Are movies and golf substitute goods, complementary goods, or independent goods? (Click to select) b. Using the data under D2 and D3, calculate the income elasticity of Ariya's demand for golf at all three prices. (To do this, apply the midpoints approach to the income elasticity of demand.) At $50, income elasticity of demand = At $35, income elasticity of demand = At $20, income elasticity of demand = Is the income elasticity the same at all three prices? (Click to select) Is golf an inferior good? (Click to select)

. Using the data under D₁ and D2, calculate the cross elasticity of Ariya's demand for golf at all three prices. (To do this, apply the midpoints approach to the cross elasticity of demand.) At $50, cross elasticity = At $35, cross elasticity = At $20, cross elasticity = Is the cross elasticity the same at all three prices? (Click to select) ✓ Are movies and golf substitute goods, complementary goods, or independent goods? (Click to select) b. Using the data under D2 and D3, calculate the income elasticity of Ariya's demand for golf at all three prices. (To do this, apply the midpoints approach to the income elasticity of demand.) At $50, income elasticity of demand = At $35, income elasticity of demand = At $20, income elasticity of demand = Is the income elasticity the same at all three prices? (Click to select) Is golf an inferior good? (Click to select)

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Ariya likes to play golf. The number of times per year that she plays depends on the price of playing a round of golf, Ariya's income, and the price of other types of entertainment-in particular, the price of going to a movie instead of playing golf. The three demand schedules in the following table show how many rounds of golf per year Ariya will demand at each price per round under three different scenarios. In scenario D₁, Ariya's income is $50,000 per year and movies cost $9 each. In scenario D2, Ariya's income is also $50,000 per year, but the price of seeing a movie rises to $11. And in scenario D3, Ariya's income goes up to $70,000 per year, while movies cost $11. Scenario Income per year Price of movie ticket Price of Golf $50 $35 $20 D1 $50,000 $9 15 25 40 D2 $50,000 $11 Quantity Demanded 10 15 20 D3 $70,000 $11 15 30 50 Instructions: Round your answers to two decimal places. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. a. Using the data under D₁ and D2, calculate the cross elasticity of Ariya's demand for golf at all three prices. (To do this, apply the midpoints approach to the cross elasticity of demand.) At $50, cross elasticity = At $35, cross elasticity = At $20, cross elasticity = Is the cross elasticity the same at all three prices? (Click to select) Are movies and golf substitute goods, complementary goods, or independent goods? (Click to select) b. Using the data upda
Transcribed Image Text:Ariya likes to play golf. The number of times per year that she plays depends on the price of playing a round of golf, Ariya's income, and the price of other types of entertainment-in particular, the price of going to a movie instead of playing golf. The three demand schedules in the following table show how many rounds of golf per year Ariya will demand at each price per round under three different scenarios. In scenario D₁, Ariya's income is $50,000 per year and movies cost $9 each. In scenario D2, Ariya's income is also $50,000 per year, but the price of seeing a movie rises to $11. And in scenario D3, Ariya's income goes up to $70,000 per year, while movies cost $11. Scenario Income per year Price of movie ticket Price of Golf $50 $35 $20 D1 $50,000 $9 15 25 40 D2 $50,000 $11 Quantity Demanded 10 15 20 D3 $70,000 $11 15 30 50 Instructions: Round your answers to two decimal places. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. a. Using the data under D₁ and D2, calculate the cross elasticity of Ariya's demand for golf at all three prices. (To do this, apply the midpoints approach to the cross elasticity of demand.) At $50, cross elasticity = At $35, cross elasticity = At $20, cross elasticity = Is the cross elasticity the same at all three prices? (Click to select) Are movies and golf substitute goods, complementary goods, or independent goods? (Click to select) b. Using the data upda
Instructions: Round your answers to two decimal places. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. a. Using the data under D₁ and D2, calculate the cross elasticity of Ariya's demand for golf at all three prices. (To do this, apply the midpoints approach to the cross elasticity of demand.) At $50, cross elasticity = At $35, cross elasticity = At $20, cross elasticity = Is the cross elasticity the same at all three prices? (Click to select) ✓ Are movies and golf substitute goods, complementary goods, or independent goods? (Click to select) b. Using the data under D2 and D3, calculate the income elasticity of Ariya's demand for golf at all three prices. (To do this, apply the midpoints approach to the income elasticity of demand.) At $50, income elasticity of demand = At $35, income elasticity of demand = At $20, income elasticity of demand = Is the income elasticity the same at all three prices? (Click to select) Is golf an inferior good? (Click to select)
Transcribed Image Text:Instructions: Round your answers to two decimal places. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. a. Using the data under D₁ and D2, calculate the cross elasticity of Ariya's demand for golf at all three prices. (To do this, apply the midpoints approach to the cross elasticity of demand.) At $50, cross elasticity = At $35, cross elasticity = At $20, cross elasticity = Is the cross elasticity the same at all three prices? (Click to select) ✓ Are movies and golf substitute goods, complementary goods, or independent goods? (Click to select) b. Using the data under D2 and D3, calculate the income elasticity of Ariya's demand for golf at all three prices. (To do this, apply the midpoints approach to the income elasticity of demand.) At $50, income elasticity of demand = At $35, income elasticity of demand = At $20, income elasticity of demand = Is the income elasticity the same at all three prices? (Click to select) Is golf an inferior good? (Click to select)
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