9)German Giraldo is a mill owner who has just published an ad that reflects his willingness to exchange cloth for food and other items. Look at the ad 1 yard of fabric per 1 pound of bacon 4 yards of fabric per 1 pound of butter 8 yards of fabric per 1 pound of wool 8 yards of fabric per 1 bag of salt If the money price of bacon was 50 cents per pound, what would the money price of butter be? 10)Suppose that 80 units of a product Y are demanded while a product X sells for $ 2. If the price of X rises to $ 4, it is observed that 100 units of product Y are demanded. Calculate what is the price elasticity of these products? Round to two decimal places

9)German Giraldo is a mill owner who has just published an ad that reflects his willingness to exchange cloth for food and other items. Look at the ad 1 yard of fabric per 1 pound of bacon 4 yards of fabric per 1 pound of butter 8 yards of fabric per 1 pound of wool 8 yards of fabric per 1 bag of salt If the money price of bacon was 50 cents per pound, what would the money price of butter be? 10)Suppose that 80 units of a product Y are demanded while a product X sells for $ 2. If the price of X rises to $ 4, it is observed that 100 units of product Y are demanded. Calculate what is the price elasticity of these products? Round to two decimal places

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter7: Production, Costs, And Industry Structure

Section: Chapter Questions

Problem 4SCQ: Based on your answers to the WipeOut Ski Company in Exercise 7.3, now imagine a situation where the...

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