The following graph will represent U.S. dollars on the y-axis and lbs. on the x-
ID: 2494556 • Letter: T
Question
The following graph will represent U.S. dollars on the y-axis and lbs. on the x-axis.
Good X
Good Y
Good Z
36) Refer to the figure above. Calculate the price elasticity of Good Z when prices for consumers increase by $3.00 in the Good Z market leading to a 3 lb. increase in Good X and a 4 lb. decrease in Good Y.
A) EpD = 1.91
B) EpS = 0.94
C) EpD = 0.94
D) EpS = 1.91
37) From number 36, calculate the price elasticity of Good Y.
A) EpD = 0.82
B) EpS = 1.22
C) EpD = 1.22
D) EpS = 0.82
38) From number 36, calculate the price elasticity of Good X.
A) EpD = 1.28
B) EpS = 0.57
C) EpD = 0.57
D) EpS = 1.28
39) From number 36, calculate the cross-price elasticity of Good Y and Z.
A) EpXY = -1.91
B) EpXY = 1.06
C) EpXY = -1.06
D) EpXY = 1.91
40) From number 36, calculate the cross-price elasticity of Good X and Z.
A) EpXY = 0.91
B) EpXY = 1.09
C) EpXY = -0.91
D) EpXY = -1.09
41) From number 36, what is the relationship between Good Y and Z?
A) Compliments
B) Normal
C) Substitutes
D) Inferior
42) From number 36, what is the relationship between Good X and Z?
A) Compliments
B) Normal
C) Substitutes
D) Inferior
12 So 101 8 6 4 2 Do 5 10 15Explanation / Answer
Ans 36) The answer is C) EpD = 0.94
Price Elasticity of DEmand=% change in quantity demanded/percentage change in price
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.