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Suppose that when income increases from $2850 to $3200 quantity demanded changes from 180 to 150.

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

 

Suppose that the income increases from $2800 to $3200. As a result, quantity demanded changes from 180 to 210.

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

 

Suppose that the price of one product increases from $12 to $39. As a result, quantity demanded for another product changes from 260 to 220.

Based on this information, calculate cross-price elasticity:

 

Suppose that the price of one product increases from $30 to $48. As a result, quantity demanded for another product changes from 240 to 200.

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

 


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