Question

1. Solve and identify (if it is elastic, inelastic or unit demand) the coefficient of the price elasticity of demand, if 1.1 Q4 = 5 Q2 = 12 P1 = $6 P2= $2 12 Q1 = 10 P1 = $6 Q2 = 3 P2 = $18 13 Q1 = 40 Q2 = 60 P = $8 P2 = $12 2- Solve and identify (if they are luxury goods, normal or inferior) the coefficient of income elasticity, if 21 Q2 = 5 Q2 = 11 12 = $8 14 = $4 22 Q1 = 2 11 = $10 Q2 = 15 12 = $5 2.3 Q1 = 4 Q2 = 14 14 = $3 12 = $17 3- Solve and identify (if they are substitute, complementary or independent goods) the coefficient of cross elasticity for a good X and a good "Y", if :| 3.1 Q1=3 Q2 = 10 Py1 = $8 Py2 = $15 3.2 x1 = 850 Py1 = $1 Qx2 = 849 Pyz = $105 3.3 Qx1 = 20 Qx2 = 8 Py2 = $14 Py1 = $6

Full Process is needed.

Answer 1

til Price elasticity of demand YIDD Q2-O 02+0) 62 P2-P, P2 +P; *100 ㅋ X160 s KDO 8.5 = 12-5 1 275 2 2-6 2+6 floo Y 100 -4 4 82-353% 1oo el 0.823 - the boiliety of demand is less than one then it Inelastic 1.2 i- Price e elasticity of demorde 3-10 340 XIDO T 18-6 1876 XLOQ 7. X100 6.5 12 12 - 107.692% X.100 Too e/o -1.6761 =-1.08 the elasticity of derrand is greater than one

113 the price elasticity of demand = 60-40 Got40 *OO 2 12-8 12+8 X100 Jo 50 X100 4 x 100 lo LIDO 40% 4o./. the clašlicity of demand is equal to one than at is By Using formulas O2-0, fo of demand Oz to, Unitory Income elasticity 0 X100 2 Iz-I) Jati x200 Qol: Income elasticity of demanda 15-2 X100 1572 $5-10 X100 2

Irene elasticity of demand = 11-5 1145 X 100 z 8-$4 $814 x100 L - X100 =75% क 76.67% 4 X 100 6 11124 than One and then it the income elasticita et demand is greater prostive lowned 2-2 Income elasticity of demand = 2 . 15-2 1542 X100 85-10 Stre Xoo z 13 X200 815 75 X 100 7.5 = 152.94% -66.67% -2.292

The income elasticity of demand it negetice then it is inferior good 23 Income ome elasticit city of demanda 14-4 T4th X100 2 $ 17-3 1743 X100 2 no q X100 14 X100 ro 1111111 140 % = 01793 ܢ the income elastici of demand is lius between O and 1 Then It is Normal icity of good

from elasticity of demand= Ox Ox Ox7Qx X200 2 Xroo Ryz-Py, PY2tly 2 Crosselas of demand = 10-3 XIDO lasticity 7:XIDO T013 -615 $ 15-8 x 100 ZX100 1518 11.5 107.69% = 10769 60.8697 the Crows elasticity of demand u positive and greater than zero them itas subílitulo goods 849–850 4200 Chape omlicity of demand 8444850 Buel Chow elsalicity 2 105-1 Tost X 100 ll 84915 104 X100 53 Orlla7% 196.226% = -0.00 of demand is geno independent goods the Cross then 다 elasticity

Crosseložlicity of demand = 8.-20 X100 8120 X100 1446 ܐ - 12 X 100 14 8 X160 TO 85.7142 80% -110714 thi Crom elasticity of demand he negatime then ite Compelematory ode