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Suppose that when income increases from $2650 to $3000 quantity demanded changes from 190 to 250.

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

 

Hint


Suppose that the income increases from $2500 to $3200. As a result, quantity demanded changes from 190 to 220.

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

 

Hint




Suppose that the price of one product increases from $18 to $40. As a result, quantity demanded for another product changes from 130 to 200.

Based on this information, calculate cross-price elasticity:

 

Hint




Suppose that the price of one product increases from $19 to $36. As a result, quantity demanded for another product changes from 260 to 190.

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

 

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