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Suppose that when income increases from $2750 to $3350 quantity demanded changes from 210 to 190.

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

 

Hint


Suppose that the income increases from $2900 to $3300. As a result, quantity demanded changes from 220 to 250.

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

 

Hint




Suppose that the price of one product increases from $20 to $39. As a result, quantity demanded for another product changes from 190 to 180.

Based on this information, calculate cross-price elasticity:

 

Hint




Suppose that the price of one product increases from $24 to $44. As a result, quantity demanded for another product changes from 180 to 220.

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

 

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