Sam is rich and at this high income level, her demand for good X is independent of income and given by X*=46.4- 3 px/Py where px and py denote respectively the price of good X and the price of good Y. Assuming the price of good Y is equal to 4.1, find the value of the price of good X at which the own-price elasticity of Sam's demand is equal to -3.

What is the income elasticity of soda (as a function of prices and income)? Income elasticity of soda: n = ()) I – 10P, Px P = 1.5, I = 36

If the cross-price elasticity of demand for good X with respect to good Y equals 0, how is that value interpreted? These goods are complements, and the quantity demanded of good X increases if the price of good Y decreases. These goods are unrelated, and a change in the price of good Y has no effect on the quantity of good X demanded. These goods are normal goods, and a change in buyers income increases the quantity demanded of good X. These goods are substitutes, and the quantity demanded of good X decreases if the price of good Y decreases.

Suppose income increases by 25 percent and, as a result, the quantity of a particular brand of automobile demanded (holding the price for this particular automobile constant) increases by 39 percent. The income elasticity of demand for this brand of car is (Enter your response rounded to two decimal places and include a minus sign if appropriate.)

It is known that the demand function for two goods, namely x and y, is shown by the equation Qx = 25 - Px + 0.5Py Px = $3 Py = $5 a. Determine the elasticity of goods x b. Determine the cross elasticity of the two goods

Congratulations! You have just landed your first job out of college as an economic analyst at the Bureau of Labor Statistics. Your starting salary is $55,000 per year; an increase of 250% per year over the salary you made at the local coffee shop. The corresponding table gives the percentage change in your purchases of each good after your income increases. Use this information to estimate your income elasticity of demand for each of the items.

Consider the following demand function Qd=1000-4P2+6P*+5Y which describes how the demand Qd for a good depends on its price, P, the price P*of another good and income Y. Calculate the own-price elasticity, the cross price elasticity and income elasticity when P=10, P*=20 and Y=1000. Is demand elastic or inelastic? Are the goods complements or substitutes? Is demand normal?

Assume the market demand for tuna cans may be written as Qtc = 45 - 2 x Ptc + Psc+ 0.3y (where Ptc = price of tuna cans and Psc = price of sardine cans, and y = income). Further assume that both tuna cans and sardine cans sell for $1 and income is $25. Calculate cross - price elasticity for tuna cans and identify whether the goods are substitutes or complements.

*4* When the price of product "X" is (P1=) $42, Shyanne purchases 20 units of product "X" and when the price of product "X" is (P2=) $38, she purchases 30 units of product "X". Shyanne's "arc" price elasticity of demand for product "X" is (Ex,x =): O" -0.25 " and the demand for "X" is relatively elastic. -4.00 " and the demand for "X" is relatively inelastic. O"-0.25 " and the demand for "X" is relatively inelastic. O " -4.00 " and the demand for "X" is relatively elastic. -0.25 " and "X" is a "normal" good. Save & Continue Continue without saving

3) When is demand said to be inelastic? a)  when the quantity demanded changes proportionately more than price b) when the quantity demanded changes proportionately more than income c) when the quantity demanded changes proportionately less than price d) when the quantity demanded changes proportionately less than income   4) Suppose there is a 3 percent increase in the price of good X and a resulting 6 percent decrease in the quantity of X demanded. What is the price elasticity of demand for X? a)      0          b)      2 c)      6          d)      infinite