9)German Giraldo is a mill owner who has just published an ad that reflects his willingness to exchange cloth for food and other items. Look at the ad 1 yard of fabric per 1 pound of bacon 4 yards of fabric per 1 pound of butter 8 yards of fabric per 1 pound of wool 8 yards of fabric per 1 bag of salt If the money price of bacon was 50 cents per pound, what would the money price of butter be? 10)Suppose that 80 units of a product Y are demanded while a product X sells for $ 2. If the price of X rises to $ 4, it is observed that 100 units of product Y are demanded. Calculate what is the price elasticity of these products? Round to two decimal places
9)German Giraldo is a mill owner who has just published an ad that reflects his willingness to exchange cloth for food and other items. Look at the ad 1 yard of fabric per 1 pound of bacon 4 yards of fabric per 1 pound of butter 8 yards of fabric per 1 pound of wool 8 yards of fabric per 1 bag of salt If the money price of bacon was 50 cents per pound, what would the money price of butter be? 10)Suppose that 80 units of a product Y are demanded while a product X sells for $ 2. If the price of X rises to $ 4, it is observed that 100 units of product Y are demanded. Calculate what is the price elasticity of these products? Round to two decimal places
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:9)German Giraldo is a mill owner who has just
published an ad that reflects his willingness to
exchange cloth for food and other items. Look
at the ad
1 yard of fabric per 1 pound of bacon
4 yards of fabric per 1 pound of butter
8 yards of fabric per 1 pound of wool
8 yards of fabric per 1 bag of salt
If the money price of bacon was 50 cents per
pound, what would the money price of butter
be?
10)Suppose that 80 units of a product Y are
demanded while a product X sells for $ 2. If
the price of X rises to $ 4, it is observed that
100 units of product Y are demanded.
Calculate what is the price elasticity of these
products? Round to two decimal places
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