Elasticity Problems Cross Price Elasticity (Exy) (QDX-QDo/[(QDN+QDDA)/2] (P-POR/[(PNE+POB)/2]¯¯ 11. QD of good A falls from 100 to 90 as the price of good B rose from $10 to $20. Calculate coefficient: (90-100) [(90+100) 21-10/95-105 - -.158 (20-10)/[(20+10)/2] 10/15 .667 Cite Elasticity: inclastic Typs of good: complement 12. QD of good A rose from 300 to 400 as the price good K increased from $1 to $2. Calculate coefficient Cite Elasticity: Ixps of reed: 13. QD for good I falls from 2000 to 1500 units as price of good Krose from $10 to $15. Calculate coefficient: Cite Elasticity: Type of good: 14. QD for good X rose from 100 to 101 units as price of good Y increases from, $8 to $15. Calculate coefficient: Cite Elasticity: Type of paed: Page 124 (368) Value of Coefficient Description Positive (0) Negative (L*0) Type of Good(s) Substitute Quantity Demanded of W changes in same direction a change in price if Z Quantity Demanded of W changes in opposite direction as change in price if Z Complement Elasticity of Supply (E.) Use same process as Prize E (QS)-QSOLDS/[(QS (NEW)+QS (LU))/2] (POE)-P(OLD))/[(P(NEW)+P(CLL))/2] 1. Price rose from $2 to $2.20 and QS increased from 100 to 130 Calculate coefficient Cite Elasticity: (E> supply is Elastic. E! Inclusic E-Unit-clastic NO TR TEST (PRICE & TR MOVE TOGETHER) Microeconomics Income Elasticity (E1) Chapter 6 (QDNEW)-QD (OLD))/[(QD (NEW)+QD(OLD))/2] (L(NEW) -I (OLD)/[(|(NEW)+|(OLD))/2] 6. Income rose from $300 to $350/week and QD fell from 8 to 4 units. Calculate coefficient: (4−8) / [(4+8)/2] (350-300)/[(350+300)/2] =-4/6 = .667 =-4.33 =50/325.154 Cite Elasticity: Elastic Type of good: Inferior Good 7. Income fell from $500 to $250/week and QD increased from 1 to 5 units. Calculate coefficient: Cite Elasticity Type of good: 8. Income increased from $400 to $700/week and QD rose from 4 to 10/week. Calculate coefficient: Cite Elasticity. Type of good: 9. Income fell from $1000 to $600/week and QD fell from 12 to 10 units/week. Calculate coefficient: Cite Elasticity: Type of good: 10. Income rose from $24,000 to $28,000/year and QD for books rose from 40 to 60/year. Calculate coefficient: Cite Elasticity: Type of good: Page 124 (368) Value of Description Type of Good(3) Coeffficient Positive (E,>0) Quantity Demanded of the product changes in same direction as change in income Normal or superior