Calculate the price elasticity of demand for each of the incomes, if the price is increases from $30,000 to $35,000. Interpret each result What type of good is it in each case? (use two decimal places for the results). 1.2. Calculate the price elasticity of demand for each of the incomes if the price is reduced from $40,000 to $35,000. 1.2. Calculate the price elasticity of demand for each income if the price is reduced from $40,000 to $35,000. Interpret each result What type of good is it in each case? (use two decimal places for the results).
The manager of the Beauty and Life company has hired him to do a market study according to income groups.
a market study according to income groups. The study yielded the following consolidated
following consolidated information:
| Units demanded (if monthly monthly income is $2.000.000) |
Units demanded (if monthly monthly income is $3.000.000) |
|
|
25.000 |
10 | 20 |
30.000 |
8 | 17 |
| 35.000 | 4 | 12 |
| 40.000 | 1 | 8 |
Use the data to find the following technical information:
1.1. Calculate the
increases from $30,000 to $35,000. Interpret each result What type of good is it in each case?
(use two decimal places for the results).
1.2. Calculate the price elasticity of demand for each of the incomes if the price is reduced from $40,000 to $35,000.
1.2. Calculate the price elasticity of demand for each income if the price is reduced from $40,000 to $35,000. Interpret each result What type of good is it in each case?
(use two decimal places for the results).
Step by step
Solved in 4 steps
