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)?.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
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![Requirement:
Question 1: Given the following information:
Price of good x
(RM)
Quantity demanded for Quantity demanded for Quantity demanded for
good Y (Units)
1,000
good x (Units)
good Z (Units)
1
100
10
2
50
500
20
25
250
40
4
20
200
80
5
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 2:](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff91a982f-11f0-47b0-adac-dd0dbf7a78d4%2Fac91c960-e497-4239-81da-2e9b82e3768b%2Fjth3206_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Requirement:
Question 1: Given the following information:
Price of good x
(RM)
Quantity demanded for Quantity demanded for Quantity demanded for
good Y (Units)
1,000
good x (Units)
good Z (Units)
1
100
10
2
50
500
20
25
250
40
4
20
200
80
5
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 2:
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