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Suppose that when income increases from $2900 to $3400 quantity demanded changes from 220 to 210.

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

 

Suppose that the income increases from $2900 to $3450. As a result, quantity demanded changes from 210 to 240.

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

 

Suppose that the price of one product increases from $28 to $37. As a result, quantity demanded for another product changes from 180 to 220.

Based on this information, calculate cross-price elasticity:

 

Suppose that the price of one product increases from $23 to $38. As a result, quantity demanded for another product changes from 170 to 220.

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

 


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