What is the cross-price elasticity of turkey for these preferences? ax Cross-price elasticity of turkey : ExP, aPy 2.51 X* 2.5P, +Ру Py= $0.50, I = 36, Pr = $0.60

2) Ernesto is looking to purchase a new vehicle as his income has increased from $2,000 per month to $3,000 per month, so his purchase increases from 0 to 1 vehicle. He see's a new Mercedes Benz that decreased its price from $45,000 to $42,000. What is Ernesto's income elasticity of demand for a Mercedes Benz vehicle?

Suppose the cross-price elasticity of café latte to the price of milk is -0.6. If the price ofmilk rises by 20%, what happens to the quantity of lattes demanded? What can you say aboutthe relationship of these two goods?

Suppose the own price elasticity of demand for good X is -2, its income elasticity is -1, its advertising elasticity is 2, and the cross- price elasticity of demand between it and good Yis-3. Determine how much the consumption of this good will change it Instructions: Enter your responses as percentages. If you are entering a negative number, be sure to use a (-) sign. a. The price of good X decreases by 4 percent. percent b. The price of good Y increases by 10 percent. percent c. Advertising decreases by 3 percent. percent d. Income increases by 2 percent. percent

What is the cross price elasticity?

Suppose the own price elasticity of demand for good X is -3, its income elasticity is 1, its advertising elasticity is 2, and the cross-price elasticity of demand between it and good Yis -4. Determine how much the consumption of this good will change if: Instructions: Enter your responses as percentages. If you are entering a negative number, be sure to use a (-) sign. a. The price of good X decreases by 5 percent. percent b. The price of good Yincreases by 10 percent. percent c. Advertising decreases by 3 percent. percent d. Income increases by 4 percent. 4 percent

DE According to the income elasticity formula, Income elasticity of demand = E=% change in quantity demanded + % change in income. By how much will popcorn sales increase if average income goes up by 9 percent? (Assume the income elasticity of popcorn is 3.29.) Instructions: Enter your response as a percentage rounded to one decimal place. percent

e. Is the price elasticity of demand between $110 and $130 elastic, unit elastic, or inelastic? f. Will Erin's total revenue rise if she increases the price from $110 to $130?

11 BIUA + Arlal I| II1 I I 2 The following questions are about income elasticity of demand. 9) Mr. Leon's income increased by 10%. (His "mommy" gave him a raise in his allowance because he was a "good little boy.") His consumption of Lego's then increased by 25%. Calculate his income elasticity. Does this imply that Lego's are a regular or an inferior product for Mr. Leon? 10) Mr. Mendivil's income increased by 20%. His consumption of pictures of Mr. Leon then decreased by 100%. Calculate the income elasticity of demand for the product. Does this imply that pictures of Mr. Leon are regular or inferior products? 11) Larry the Wild & Crazy Monkey saw a decrease in his income by 25%. With this, his consumption of berries increased by 50%. Calculate his income elasticity of demand. What can we conclude about berries as a consumer good for Larry the Wild & Crazy Monkey? Explain. ip lili 司