A. The price of gasoline increases from 16 per barrel to 30 per barrel and as a result, the demand per month for new cars changes from 550 to 300. Part 1: The elasticity is Number Part 2: These goods are (answer using numbers, 1-4) Number B. As a result of a change in income trom 1,975 to 3,875 per month, the consumption of good X changes from 300 to 600 units. Part 3: The elasticity is Number Part 4: Good X is a(an) (answer using numbers, 1-4) Number C. As a result of a decrease in the price of good Y from 39 to 12 the demand for good X changes from 150 to 500 units.

A. The price of gasoline increases from 16 per barrel to 30 per barrel and as a result, the demand per month for new cars changes from 550 to 300. Part 1: The elasticity is Number Part 2: These goods are (answer using numbers, 1-4) Number B. As a result of a change in income trom 1,975 to 3,875 per month, the consumption of good X changes from 300 to 600 units. Part 3: The elasticity is Number Part 4: Good X is a(an) (answer using numbers, 1-4) Number C. As a result of a decrease in the price of good Y from 39 to 12 the demand for good X changes from 150 to 500 units.

Name: Calculate the elasticity for the following questions (USING THE MIDPO
Uploaded: 2022-11-22T13:58:24.000Z
Channel: Bartleby
Description: Calculate the elasticity for the following questions (USING THE MIDPOINT (AVERAGE) FORMULA) and indicate if the goods are:1. Inferior,2. Normal,3. Complements, or4. Substitutes(Please Include The Negative signs in your answers where appropriate and

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter5: Elasticity Of Demand And Supply

Section: Chapter Questions

Problem 4.9P: (Other Elasticity Measures) Complete each of the following sentences: a. The income elasticity of...

See similar textbooks

Similar questions

(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.
On Tuesday, the price and quantity demanded are 7 and 120 units, respectively. Ten days later, the price and quantity demanded are 6 and 150 units, respectively. What is the price elasticity of demand between the 7 and 6 prices?
Estimates presented in Exhibit 5 show that Android users have a higher price elasticity of demand for apps in the Google Play Store than do iPhone users in the Apple App Store. Why might Android users tend to be more sensitive to app prices than iPhone users? What categories or types of apps (for example, games/social media) do you think have the highest price elasticities?
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.
Prove that price elasticity of demand is not the same as the slope of a demand curve.
If the elasticity of demand for hamburgers equals 21.5 and the quantity demanded equals 40,000, predict what will happen to the quantity demanded of hamburgers when the price increases by 10 percent. If the price falls by 5 percent, what will happen?