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 | 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
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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