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Search YS e list - elasticities.pdf Close 2. Income increased by 3.5% in the previous year. During that time total spending on three different goods changed. First good cost 2 PLN and total spending decreased from 345,000 to 305,000 units. Second good cost 5 PLN and total spending increased from 210,000 to 215,000. Third good cost 10 PLN and total spending increased from 500,000 to 600,000. What can you tell about those goods, provided the price remained unchanged during the previous year (use income elasticity of demand). 3. Table 2 shows cross-price and own-price elasticities of Table 2: Cross-price and own-price elasticities of demand demand in some country. Percentage change in In response to 1%change in price of: (a) Comment on each of the good itself. Give the reasons quantity demanded of: Food Wine Beer for such characteristics. Food -0.25 0.06 0.06 (b) Comment on each of the cross-connections between Wine -0.13 -1.20 0.27 Beer 0.07 0.41 0.85 those two goods. Give the reasons for such characteristics. 4. Calculate the price elasticity of the demand if the price increased from 20 to 22 PLN/kg, and consumption decreased