The table shows the average income of households and the quantity demanded of products M and N at different prices and levels of income. Year Average Income Quantity of N Price of M $2.50 Quantity of M 105 1 $42,000 Price of N $16. 16 730 2 42,000 2.90 100 700 3 42,000 2.90 95 28 670 4 48,000 2.90 105 28 710 a) What is the price elasticity of demand for product M between years 1 and 2? Round your answers to 2 decimal places. 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.
The table shows the average income of households and the quantity demanded of products M and N at different prices and levels of income. Year Average Income Quantity of N Price of M $2.50 Quantity of M 105 1 $42,000 Price of N $16. 16 730 2 42,000 2.90 100 700 3 42,000 2.90 95 28 670 4 48,000 2.90 105 28 710 a) What is the price elasticity of demand for product M between years 1 and 2? Round your answers to 2 decimal places. 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.
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter22: Inflation
Section: Chapter Questions
Problem 4SCQ: Edna is living in a retirement home where home where most of her needs are taken care of, but she...
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