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Suppose that when income increases from $2500 to $3000 quantity demanded changes from 210 to 190.

Using the mid-point elasticity approach, calculate income elasticity.

 

Hint


Suppose that the income increases from $2550 to $3350. As a result, quantity demanded changes from 190 to 200.

Based on this information you can tell that this products is:

 

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Suppose that the price of one product increases from $12 to $43. As a result, quantity demanded for another product changes from 270 to 200.

Based on this information, calculate cross-price elasticity:

 

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Suppose that the price of one product increases from $21 to $46. As a result, quantity demanded for another product changes from 200 to 180.

Based on this information you can tell that these two products are:

 

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