The table describes the weekly prices and quantity demanded for two goods, A and B, over...

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The table describes the weekly prices and quantity demanded for two goods, A and B, over a three-week period. Round all calculations to 3 decimal places (example: 0.001). Week 1 Week 2 Week 3 QD of Good A 6 33 Qo of Good B 8 5 9 Price of Good A $1 $1.50 $1.50 Price of Good B $1.50 $1.50 $1.50 Income $18 $12 $18 Part (a): Calculate the numerical value of the appropriate elasticity to determine whether Goods A and B are complements, substitutes, or unrelated. To receive full marks, you must use 1-2 sentences to explain how you've arrived at this conclusion. Part (b): Calculate the numerical value of the appropriate elasticity to determine whether Goods A and B are normal, inferior or income inelastic (not dependent on income, Y). To receive full marks, you must use 1-2 sentences to explain how you've arrived at these conclusions. The table describes the weekly prices and quantity demanded for two goods, A and B, over a three-week period. Round all calculations to 3 decimal places (example: 0.001). Week 1 Week 2 Week 3 QD of Good A 6 33 Qo of Good B 8 5 9 Price of Good A $1 $1.50 $1.50 Price of Good B $1.50 $1.50 $1.50 Income $18 $12 $18 Part (a): Calculate the numerical value of the appropriate elasticity to determine whether Goods A and B are complements, substitutes, or unrelated. To receive full marks, you must use 1-2 sentences to explain how you've arrived at this conclusion. Part (b): Calculate the numerical value of the appropriate elasticity to determine whether Goods A and B are normal, inferior or income inelastic (not dependent on income, Y). To receive full marks, you must use 1-2 sentences to explain how you've arrived at these conclusions.

Answer rating: 100% (QA)

Lets start by calculating the crossprice elasticity of demand CPED for Part a to determine whether Goods A and B are complements substitutes or unrela... View the full answer