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Suppose that when income increases from $2600 to $3350 quantity demanded changes from 180 to 220.

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

 

Suppose that the income increases from $2600 to $3250. As a result, quantity demanded changes from 200 to 200.

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

 

Suppose that the price of one product increases from $28 to $35. As a result, quantity demanded for another product changes from 200 to 180.

Based on this information, calculate cross-price elasticity:

 

Suppose that the price of one product increases from $24 to $36. As a result, quantity demanded for another product changes from 180 to 180.

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

 


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