Price of good x (RM) Quantity demanded for good x (Units) Quantity demanded for good Y (Units) Quantity demanded for good Z (Units) 1 100 1,000 10 50 500 20 25 250 40 4 20 200 80 5 18 180 180 a) What is the relationship between: i) ii) Goods X and Y? Goods X and Z? b) If you are the producer of good x and you want to increases your total revenue would you increase the price of RM3 per unit to RM4 per unit? Why? (use the concepts of elasticity in your answer)?

Price of good x (RM) Quantity demanded for good x (Units) Quantity demanded for good Y (Units) Quantity demanded for good Z (Units) 1 100 1,000 10 50 500 20 25 250 40 4 20 200 80 5 18 180 180 a) What is the relationship between: i) ii) Goods X and Y? Goods X and Z? b) If you are the producer of good x and you want to increases your total revenue would you increase the price of RM3 per unit to RM4 per unit? Why? (use the concepts of elasticity in your answer)?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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