b. Given the following information of Good A and Good B. Price of Good A (RM) 2 4 6 8 10 12 Quantity Demanded for Good A (units) 150 120 100 90 80 60 Quantity Demanded for Good B (units) 100 80 60 50 40 20 Based on the table above, answers the following questions. Quantity Supplied for Good A (units) 30 60 90 120 150 180 i. Calculate the price elasticity of demand for Good A if the price of Good A increases from RM2 to RM6.

b. Given the following information of Good A and Good B. Price of Good A (RM) 2 4 6 8 10 12 Quantity Demanded for Good A (units) 150 120 100 90 80 60 Quantity Demanded for Good B (units) 100 80 60 50 40 20 Based on the table above, answers the following questions. Quantity Supplied for Good A (units) 30 60 90 120 150 180 i. Calculate the price elasticity of demand for Good A if the price of Good A increases from RM2 to RM6.

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter20: Elasticity: Demand And Supply

Section: Chapter Questions

Problem 13E: Using the following equation for the demand for a good or service, calculate the price elasticity of...

See similar textbooks

Similar questions

Income Effects depend on the income elasticity of demand for each good limit you buy. If one of the goods you buy has a negative income elasticity, that is, it is an inferior good, what must be true of the income elasticity of the other good you buy?
What is the formula for line cross-price elasticity of demand?
What does a price elasticity of demand of 0.39 mean?
Suppose you could buy shoes one at a time, miter than in pain. What do you predict the cross-price elasticity for left shoes and right shoes would be?
Economists define normal goods as having a positive income elasticity. We can divide normal goods into two types: Those whose income elasticity is less than one and those whose income elasticity is greater than one. Think about products that would fall into each category. Can you come up with a name for each category?
What is the formula for the income elasticity of demand?
The equation for a demand curve is P=483Q. What is the elasticity in moving from quantity of 5 to a quantity of 6?
(Price Elasticity and Total Revenue) Fill in the blanks for each price-quantity combination listed in the following table. Now graph this relationship, making sure to label each axis. What relationship have you depicted?
The avenge annual income rises from 25,000 to 33,000, and the quantity of bleed consumed in a year by the avenge person falls from 30 loaves to 22 loaves. What is the income elasticity of bread consumption? Is bread a normal or an inferior good?
Plot the price and quantity data given in the demand schedule of exercise 1. Put price on the vertical axis and quantity on the horizontal axis. Indicate the price elasticity value at each quantity demanded. Explain why the elasticity value gets smaller as you move down the demand curve.
(Other Elasticity Measures) Complete each of the following sentences: a. The income elasticity of demand measures, for a given price, the __________ in quantity demanded divided by the __________ income from which it resulted. b. If a decrease in the price of one good causes a decrease in demand for another good, the two goods are __________. c. If the value of the cross-price elasticity of demand between two goods is approximately zero, they are considered __________.
Using the following equation for the demand for a good or service, calculate the price elasticity of demand (using the point form), cross-price elasticity with good x and income elasticity. Q=82P+0.10I+Px Q is quantity demanded, P is the product price. P1 is the price of a related good, and I is income. Assume that P= $10, I = 100, and Px = 20.