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28 Aug 2020
Quantities Purchased Quantities Purchased Income Prices Good X Good Y $30,000 Px = $6, Py = $3 2 20 50,000 Px = $6, Py = $4 5 10
Quantity Purchased
Quantity Purchased
Income
Price
Good X
Good Y
$30,000
Px = $6; Py = $3
2
20
$50,000
Px = $6; Py = $4
5
10
Refer to Table.
A. Using the information in the table, calculate the income elasticity of demand for good X and characterize the good. Use the midpoint formula.
B. Can you calculate the income elasticity of demand for good Y? If you can, show your calculation and characterize the good. If you cannot, explain why.
Quantities Purchased Quantities Purchased Income Prices Good X Good Y $30,000 Px = $6, Py = $3 2 20 50,000 Px = $6, Py = $4 5 10
Quantity Purchased | Quantity Purchased | ||
Income | Price | Good X | Good Y |
$30,000 | Px = $6; Py = $3 | 2 | 20 |
$50,000 | Px = $6; Py = $4 | 5 | 10 |
Refer to Table.
A. Using the information in the table, calculate the income elasticity of demand for good X and characterize the good. Use the midpoint formula.
B. Can you calculate the income elasticity of demand for good Y? If you can, show your calculation and characterize the good. If you cannot, explain why.
tealshark869Lv1
2 Jun 2021