ECO100Y1 Lecture : Q2 PED and Income (Easy)
19 views1 pages
Get access
Grade+20% off
$8 USD/m$10 USD/m
Billed $96 USD annually
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
40 Verified Answers
Class+
$8 USD/m
Billed $96 USD annually
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
30 Verified Answers
Related textbook solutions
Related Documents
Related Questions
John Hoppin consumed 30 pounds of beans (B) and 40 pounds of rice (R) in 1897.
His PED, IED, and XPED for these products are given in the table below.
Beans | Rice | |||
------------------- | ------------------- | |||
PED | 1.43 | 0.83 | ||
IED | 1.02 | 1.24 | ||
XPED* | 0.20 | 0.20 |
* The first number is the cross-price elasticity of demand for beans with respect to a change in the price of rice. The second number is the opposite.
In 1898, Hoppinâs income increased by 10%, the price of rice increased by 20%, and
the price of beans stayed the same. How many pounds of beans did he consume in
that year?