Following table shows data for two markets a and, Ask an Expert

Economics

Following table shows data for two markets A and B

Year	Average consumer Income	Price per unit of A good	Quantity of A good	Price per unit of B good	Quantity of B good
1	$30,000	$6	200	$50	80
2	$30,000	$7	180	$50	75
3	$30,000	$7	160	$60	70
4	$36,000	$7	180	$60	74

1. What is the price elasticity of demand for good A? Is the demand for this good elastic or inelastic?

2. What is the price elasticity of demand for good B? Is the demand for this good elastic or inelastic?

3. What is the income elasticity of demand for good A? Is this good normal or inferior?

4. What is the income elasticity of demand for good B? Is this good normal or inferior?

5. What is the cross price elasticity of demand of good A for a change in the price of good B? Comment on the relationship between good A and good B.

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M91947147

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