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Suppose that when income increases from $2450 to $3050 quantity demanded changes from 190 to 270.

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

 

Hint


Suppose that the income increases from $2600 to $3200. As a result, quantity demanded changes from 190 to 180.

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

 

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Suppose that the price of one product increases from $29 to $37. As a result, quantity demanded for another product changes from 250 to 220.

Based on this information, calculate cross-price elasticity:

 

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Suppose that the price of one product increases from $23 to $37. As a result, quantity demanded for another product changes from 170 to 210.

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

 

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