Chapter 3: Elasticity 4. Answer the following questions based on the table below. Price of Good Quantity Demanded good X Quantity Demanded good X (Million) Y (Milion) 260 200 240 220 220 240 20 200 260 Calculate the price elasticity of demand for good X if the price of good X increases from RMS to RM10 per unit. State whether it is elastic or inelastic (2 points) b Calculate the cross elasticity of demand for good Y when the price of X falls from RM 20.00 to RM 10:00. Indicate the relationship between X and Y, (2 points) C. Assume that when consumer's income increase from RM 1200 to RM 1700, the demand for good Y increases from 220 to 260 units. Calculate the income elasticity of demand for Y. What type of good is Y? (2 points) d Answer the following question: L The quantity demanded coconut increase from 100 to 150 units as its price decrease from RM2.50 to RM2.30 per units. Calculate the price elasticity of demand for coconut and state the degree of elasticity. (2 points) The quantity demanded iphone remains at 250 units as the price of Perodua Aruz decrease from RM33,000 to RM29,000. Calculate the cross elasticity of demand for iphone and state the types of relationships between iPhone and Perodua Aruz (2 points) PEC1133 30 D MICROECONOMICS Chapter 3. Elasticity 5. Refer to the following table Price of Good E (RM) Quantity demanded of Quantity demanded for Consumer's income Good E good R RM) 20 2 10 500 18 4 8 450 16 6 6 400 14 B 350 a) Calculate the price elasticity of demand for Good E when its price increase from RM4 to RM6. What is the degree of elasticity of demand? (3 points) b) Calculate the cross elasticity of demand for good R when the price of Good E decrease from RMB to RM6. What is the relationship between Good E and Good R? Give an examples of Good E and Good R ( 4 points) c) Calculate the income elasticity of demand for good R when income of consumer increase from Rm350 to RM500. What types of Good is R? (3 points)