Using either the arc elasticity formula or calculus, calculate cross price elasticity of demand (Exy) for pork with respect to beef around (i.e., +/- 1%) a price of beef of $6.00, given a market price for pork of $3.00, and given the following information: Qork 130-40pPork +51 +11pBeef +8pChicken Qork 160 + 10pPork-2pLabor-6pRent - 4pCapital Where: I= income = 6 pBeef price of beef = 6 pChicken price of chicken = 3 = plabor labor wage rate = 8 pRent price of rent = 6 pCapital price of capital = 2 = = NOTE: Elasticity calculations are very sensitive to rounding. If you elect to perform multiple individual calculations, use and round to six significant digits (i.e., six decimal places, e.g., 0.000001) in each calculation.

Using either the arc elasticity formula or calculus, calculate cross price elasticity of demand (Exy) for pork with respect to beef around (i.e., +/- 1%) a price of beef of $6.00, given a market price for pork of $3.00, and given the following information: Qork 130-40pPork +51 +11pBeef +8pChicken Qork 160 + 10pPork-2pLabor-6pRent - 4pCapital Where: I= income = 6 pBeef price of beef = 6 pChicken price of chicken = 3 = plabor labor wage rate = 8 pRent price of rent = 6 pCapital price of capital = 2 = = NOTE: Elasticity calculations are very sensitive to rounding. If you elect to perform multiple individual calculations, use and round to six significant digits (i.e., six decimal places, e.g., 0.000001) in each calculation.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Using either the arc elasticity formula or calculus, calculate cross price elasticity of demand
(Exy) for pork with respect to beef around (i.e., +/- 1%) a price of beef of $6.00, given a
market price for pork of $3.00, and given the following information:
Where:
I= income = 6
pBeef price of beef = 6
Chicken price of chicken = 3
0.507692
0.230769
NOTE: Elasticity calculations are very sensitive to rounding. If you elect to perform multiple
individual calculations, use and round to six significant digits (i.e., six decimal places, e.g.,
0.000001) in each calculation.
0.184615
0.061538
Qork
130-40pPork +51 +11pBeef +8pChicken
Qork 160 + 10pPork-2pLabor-6pRent - 4pCapital
-0.123077
O-0.276923
O-0.923077
plabor labor wage rate = 8
pRent price of rent = 6
pCapital price of capital = 2
-

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