The table shows the average income of households and the quantity demanded of products M and N at different prices and levels of income. Average Income $42, e00 Quantity of N Price of M Quantity of M Price of N Year 1 $2.50 105 $16 730 2 2.90 700 42,000 42,000 100 16 3 2.90 95 28 670 48, e00 2.90 105 28 710 a) What is the price elasticity of demand for product M between years 1 and 2? Round your answers to 2 decimal places. b) What is the price elasticity of demand for product N between years 2 and 3? Round your answers to 2 decimal places. c) What is the income elasticity of demand for product M between years 3 and 4? Round your answers to 2 decimal places.

The table shows the average income of households and the quantity demanded of products M and N at different prices and levels of income. Average Income $42, e00 Quantity of N Price of M Quantity of M Price of N Year 1 $2.50 105 $16 730 2 2.90 700 42,000 42,000 100 16 3 2.90 95 28 670 48, e00 2.90 105 28 710 a) What is the price elasticity of demand for product M between years 1 and 2? Round your answers to 2 decimal places. b) What is the price elasticity of demand for product N between years 2 and 3? Round your answers to 2 decimal places. c) What is the income elasticity of demand for product M between years 3 and 4? Round your answers to 2 decimal places.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter5: Elastic And Its Application

Section: Chapter Questions

Problem 10PA

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