II. Compute for the income or cross price elasticity. Write the resulting elasticity and the type...

 

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II. Compute for the income or cross price elasticity. Write the resulting elasticity and the type of good as required in some of the numbers. 1- Suppose income falls 1 percent in a year and as a result construction of new parks falls from 18 million to 16 million units annually. The value of the income elasticity of demand for parks is: 2- An decrease in income from 3,000 to 2,000 causes demand for restaurant meals to decrease from every week to twice a month. Calculate for income elasticity and identify the type of good. 3- Solve for the elasticity of demand for Good X with respect to the price of Good Y. Demand for Original Original New Price New Quantity Price Quantity Commodity 30 Commodity 21 65 25 50 Y 4- Calculate the income elasticity of demand for each of the following goods. Write the type of elasticity/type of good Goods Type Qty Demand at Income = Qty Demand at Income = 10000 20000 Refrigerator 10 25 Sofa 4 Bread 20 3. II. Compute for the income or cross price elasticity. Write the resulting elasticity and the type of good as required in some of the numbers. 1- Suppose income falls 1 percent in a year and as a result construction of new parks falls from 18 million to 16 million units annually. The value of the income elasticity of demand for parks is: 2- An decrease in income from 3,000 to 2,000 causes demand for restaurant meals to decrease from every week to twice a month. Calculate for income elasticity and identify the type of good. 3- Solve for the elasticity of demand for Good X with respect to the price of Good Y. Demand for Original Original New Price New Quantity Price Quantity Commodity 30 Commodity 21 65 25 50 Y 4- Calculate the income elasticity of demand for each of the following goods. Write the type of elasticity/type of good Goods Type Qty Demand at Income = Qty Demand at Income = 10000 20000 Refrigerator 10 25 Sofa 4 Bread 20 3.