Microecon

posted by .

Using the midpoints approach to the cross elasticity of demand-calculate the cross eleasticity the demand for golf at all 3 prices.
Price Demand1 D2 D3

50 15 10 15
35 25 15 30
20 40 20 50

D1 -Income $50k per yr, movies $9
D2 -Income $50k -movies $11
D3 -Income $70k -movies $11

Using D2, D3, calculate income elasticity of demand for golf.

McConnell, Microecon 19e
Chap 4 -Problem #7

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. economic

    Suppose that your firm was accused of illegally conspiring with other sellers to act as a monopolist. In searching for an expert witness, you discover one economist who has calculate the cross elasticity of demand for your industry's …
  2. demand & Supply

    If the demand for butter rises by 4% while the price of margarine rises by 8%, then calculate the cross price elasticity of demand of butter with respect to the price of margarine?
  3. Managerial Economics

    This is some HW for a Managerial Econ class. I've got what I think are the answers, and I'd just like someone to read over my reasoning & check my answers. Any assistance is appreciated. Thanks! 2.) A recent study of the Madison, Wisconsin …
  4. Microecon

    If you are given this function: P=1000-40Q where P=price and Q=sales..... How do you get the price elasticity of demand at a price that is $500?
  5. Managerial Economics

    The coefficient of the price of gasoline in the regression of the quantity demanded of automobiles (in millions of units) on the price of gasoline (in dollars) and other variables is -14. (a) calculate the cross price elasticity of …
  6. managerial economics

    Explain the relationship between product X, product Y and product Z or the properties of each according to the following statements a. Cross price elasticity between X and Y is -4 b. Cross price elasticity between X and Y is 12 c. …
  7. economics

    suppose the demand curve for a product is given by Q=10-2P+Ps1,where P is the price of the product and Ps is the price of a substitute good. the price of the substitute good is $2.00. a)suppose P=$1.00, what is the price elasticity …
  8. economics

    Assume that demand for product A can be expressed as QA = 500 ¨C 5PA + 3PB and demand for product B can be expressed as QB = 300 ¨C 2PB + PA. Currently, market prices and quantities for these goods are PA, = 5, PB = 2, QA = 481, …
  9. Econ

    Coca-Cola in dispensers located on a golf course sells for $1.25 a can, and golfers buy 1,000 cans. Assume the course raises the price to $1.26 (assume a penny raise is possible) and sales fall to 992 cans. a. Using the midpoint formula, …
  10. Economics

    1.calculate the price elasticity of demand when the price was increased from R25 to R40 ?

More Similar Questions