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Suppose that when income increases from $2600 to $3450 quantity demanded changes from 210 to 240.

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

 

Hint


Suppose that the income increases from $2400 to $3300. As a result, quantity demanded changes from 220 to 160.

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

 

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Suppose that the price of one product increases from $27 to $48. As a result, quantity demanded for another product changes from 190 to 210.

Based on this information, calculate cross-price elasticity:

 

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Suppose that the price of one product increases from $25 to $43. As a result, quantity demanded for another product changes from 250 to 200.

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

 

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