Part 3 (2 points)See HintIf the price of chicken falls by 2%, the quantity of beef demanded wouldby%.Part 4 (2 points)O See HintIf the price of potatoes falls by 12%, the quantity of beef demanded wouldby%. In the following questions, give all your answers to two decimals.Patrice works as an economist for the Bureau of Labor Statistics (BLS). Her current project is to estimate theeffect of changes in income, prices of related goods, and the price of potatoes on the demand for beef. Patrice hasthe following data:Price elasticity of demand for beef-0.80Income elasticity of demand for beef+ 1.40Cross-price elasticity between beef and chicken+1.20Cross-price elasticity between beef and potatoes-0.50

Cross-elasticity between beef & chicken = % Change in quantity of beef / % Change in price of…

Part 3 (2 points) O See Hint If the price of chicken falls by 2%, the quantity of beef demanded would by %. Part 4 (2 points) See Hint If the price of potatoes falls by 12%, the quantity of beef demanded would by %.

Part 3 (2 points) O See Hint If the price of chicken falls by 2%, the quantity of beef demanded would by %. Part 4 (2 points) See Hint If the price of potatoes falls by 12%, the quantity of beef demanded would by %.

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter5: Elastic And Its Application

Section: Chapter Questions

Problem 7PA: Maria has decided always to spend one third of her income on clothing. a. What is her income...

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Question

Part 3 (2 points)
See Hint
If the price of chicken falls by 2%, the quantity of beef demanded would
by
%.
Part 4 (2 points)
O See Hint
If the price of potatoes falls by 12%, the quantity of beef demanded would
by
%.

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