Question 1: Given the following information: Price of good x (RM) Quantity demanded for Quantity demanded for Quantity demanded for good Y (Units) good x (Units) good Z (Units) 1 100 1,000 10 2 50 500 20 3 25 250 40 4 20 200 80 18 180 180 a) Suppose the price of good x increase from RM3 per unit to RM4 per unit, calculate and explain: i) Price elasticity of demand for good x. ii) Cross elasticity of demand for good Y with respect to good X. iii) Cross elasticity of demand for good Z with respect to good X. b) What is the relationship between: i) Goods X and Y? ii) Goods X and Z? c) 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)?.

Question 1: Given the following information: Price of good x (RM) Quantity demanded for Quantity demanded for Quantity demanded for good Y (Units) good x (Units) good Z (Units) 1 100 1,000 10 2 50 500 20 3 25 250 40 4 20 200 80 18 180 180 a) Suppose the price of good x increase from RM3 per unit to RM4 per unit, calculate and explain: i) Price elasticity of demand for good x. ii) Cross elasticity of demand for good Y with respect to good X. iii) Cross elasticity of demand for good Z with respect to good X. b) What is the relationship between: i) Goods X and Y? ii) Goods X and Z? c) 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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