The table below gives data for a particular market. $$\begin{array} { c c c c c c }
\hline \text { Year } & \begin{array} { c }
\text { Average } \
\text { Income }
\end{array} & \text { Price of A } & \text { Qu. of A } & \text { Price of B } & \text { Qu. Of B } \
\hline 1 & \$ 40000 & \$ 2 & 800 & \$ 10 & 16 \
2 & 40000 & 3 & 600 & 10 & 18 \
3 & 40000 & 3 & 400 & 8 & 20 \
4 & 48000 & 3 & 600 & 8 & 22 \
\hline
\end{array}$$ a) What is the price elasticity of demand for the product A?
b) What is the price elasticity of demand for the product B?
c) What is the income elasticity of demand for the product A?
d) What is the income elasticity of demand for the product B?
e) What is the cross-elasticity of demand of product A for a change in the price of product B?

Question

The table below gives data for a particular market. $$\begin{array} { c c c c c c } 
\hline \text { Year } & \begin{array} { c } 
\text { Average } \
\text { Income }
\end{array} & \text { Price of A } & \text { Qu. of A } & \text { Price of B } & \text { Qu. Of B } \
\hline 1 & \$ 40000 & \$ 2 & 800 & \$ 10 & 16 \
2 & 40000 & 3 & 600 & 10 & 18 \
3 & 40000 & 3 & 400 & 8 & 20 \
4 & 48000 & 3 & 600 & 8 & 22 \
\hline
\end{array}$$ a) What is the price elasticity of demand for the product A?
b) What is the price elasticity of demand for the product B?
c) What is the income elasticity of demand for the product A?
d) What is the income elasticity of demand for the product B?
e) What is the cross-elasticity of demand of product A for a change in the price of product B?

Quizplus · Accepted Answer

The Answer of The table below gives data for a particular market. $$\begin{array} { c c c c c c } 
\hline \text { Year } & \begin{array} { c } 
\text { Average } \
\text { Income }
\end{array} & \text { Price of A } & \text { Qu. of A } & \text { Price of B } & \text { Qu. Of B } \
\hline 1 & \$ 40000 & \$ 2 & 800 & \$ 10 & 16 \
2 & 40000 & 3 & 600 & 10 & 18 \
3 & 40000 & 3 & 400 & 8 & 20 \
4 & 48000 & 3 & 600 & 8 & 22 \
\hline
\end{array}$$ a) What is the price elasticity of demand for the product A?
b) What is the price elasticity of demand for the product B?
c) What is the income elasticity of demand for the product A?
d) What is the income elasticity of demand for the product B?
e) What is the cross-elasticity of demand of product A for a change in the price of product B?

The Table Below Gives Data for a Particular Market A) What Is the Price Elasticity of Demand for the