Using either the arc elasticity formula or calculus, calculate cross price elasticity of demand (Exy) for pork with respect to beef around (i.e., +/- 1%) a price of beef of $6.00, given a market price for pork of $3.00, and given the following information: Qork 130-40pPork +51 +11pBeef +8pChicken Qork 160 + 10pPork-2pLabor-6pRent - 4pCapital Where: I= income = 6 pBeef price of beef = 6 pChicken price of chicken = 3 = plabor labor wage rate = 8 pRent price of rent = 6 pCapital price of capital = 2 = = NOTE: Elasticity calculations are very sensitive to rounding. If you elect to perform multiple individual calculations, use and round to six significant digits (i.e., six decimal places, e.g., 0.000001) in each calculation.

Suppose Amazon lowers its Prime membership monthly fee from $12.99 to $9.99. The price elasticity of demand for Amazon membership subscription in this price range is estimated at -0.8. You predict that the number of Prime subscriptions will (increase/decrease) increase Aby (enter a number rounded to one digit after the decimal point, e.g., 22.2) A/ % and that Amazon's revenue will (increase/decrease) A by (enter a number rounded to one digit after the decimal point, e.g., 9.9) A %.

The cross price elasticity between two goods is +0.9, the initial prices of the two goods are P1 = $2 and P2 = $3, the initial quantities of the goods are Q1 = 10,000 and Q2=8000. Calculate the new amount of Q2 demanded if P1 increases to $2.75 Type your numeric answer and submit 21333 X

A recent report by the Centers for Disease Control looked at the relationship between the price of beer and the incidence of new cases of STD's. The report concluded that a beer tax increase of $.20 could reduce overall STD rates by 8.9%. Assume that a six pack cost $5.90 before the price increase. Calculate the cross price elasticity between beer and STD's. What is the sign of this cross-price elasticity? According to your estimate, are beer and STD's compliments or substitutes? Does your answer make sense? Explain.