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 Price of M Quantity of M Price of N Quantity of N 1 $42,000 $2.50 105 $16 730 2 42,000 2.90 100 16 700 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.
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
1 $42,000 $2.50 105 $16 730
2 42,000 2.90 100 16 700
3 42,000 2.90 95 28 670
4 48,000 2.90 105 28 710
a) What is the
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.
e) What is the cross-elasticity of demand of product M for a change in the price of product N between years 2 and 3? Round your answers to 2 decimal places and remember to enter a minus (-) sign to indicate negative values.
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