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e table shows the average income of households and the quantity demanded of products M and N at different prices and levels of come. Year 1 2 Average Income $44,000 44,000 44,000 50,000 a) What is the price elasticity of demand for product M between years 1 and 2? Round your answers to 2 decimal places. 3 4 Price of M Quantity of M $2.40 2.70 2.70 2.70 Price of N $18 18 26 26 105. 95 85 95 087 Quantity of N 820 800 780 810 b) What is the price elasticity of demand for product N between years 2 and 3? Round your answers to 2 decimal places. c) What is the income elasticity of demand for product M between years 3 and 4? Round your answers to 2 decimal places. d) What is the income elasticity of demand for product N between years 3 and 4? Round your answers to 2 decimal places. e) What is the cross-elasticity of demand of product M for a change in the price of product N between years 2 and 3? Round your dicate negative values.

e table shows the average income of households and the quantity demanded of products M and N at different prices and levels of come. Year 1 2 Average Income $44,000 44,000 44,000 50,000 a) What is the price elasticity of demand for product M between years 1 and 2? Round your answers to 2 decimal places. 3 4 Price of M Quantity of M $2.40 2.70 2.70 2.70 Price of N $18 18 26 26 105. 95 85 95 087 Quantity of N 820 800 780 810 b) What is the price elasticity of demand for product N between years 2 and 3? Round your answers to 2 decimal places. c) What is the income elasticity of demand for product M between years 3 and 4? Round your answers to 2 decimal places. d) What is the income elasticity of demand for product N between years 3 and 4? Round your answers to 2 decimal places. e) What is the cross-elasticity of demand of product M for a change in the price of product N between years 2 and 3? Round your dicate negative values.

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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Please answer A,B and D.
es The table shows the average income of households and the quantity demanded of products M and N at different prices and levels of income. Mc Graw Hill Year 1 2 3 4 080 Average Income $44,000 44,000 44,000 50,000 Price of M $2.40 2.70 2.70 2.70 Quantity of M 105 95 85 95 a) What is the price elasticity of demand for product M between years 1 and 2? Round your answers to 2 decimal places. 0.87 Price of N $18 18 26 26 b) What is the price elasticity of demand for product N between years 2 and 3? Round your answers to 2 decimal places. Quantity of N 820 800 780 810 4 c) What is the income elasticity of demand for product M between years 3 and 4? Round your answers to 2 decimal places. -0.31 d) What is the income elasticity of demand for product N between years 3 and 4? Round your answers to 2 decimal places. e) What is the cross-elasticity of demand of product M for a change in the price of product N between years 2 and 3? Round your answers to 2 decimal places and remember to enter a minus (-) sign to indicate negative values. < Prev 5 of 8 Next >
Transcribed Image Text:es The table shows the average income of households and the quantity demanded of products M and N at different prices and levels of income. Mc Graw Hill Year 1 2 3 4 080 Average Income $44,000 44,000 44,000 50,000 Price of M $2.40 2.70 2.70 2.70 Quantity of M 105 95 85 95 a) What is the price elasticity of demand for product M between years 1 and 2? Round your answers to 2 decimal places. 0.87 Price of N $18 18 26 26 b) What is the price elasticity of demand for product N between years 2 and 3? Round your answers to 2 decimal places. Quantity of N 820 800 780 810 4 c) What is the income elasticity of demand for product M between years 3 and 4? Round your answers to 2 decimal places. -0.31 d) What is the income elasticity of demand for product N between years 3 and 4? Round your answers to 2 decimal places. e) What is the cross-elasticity of demand of product M for a change in the price of product N between years 2 and 3? Round your answers to 2 decimal places and remember to enter a minus (-) sign to indicate negative values. < Prev 5 of 8 Next >
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