Assume that factors that may change demand but are not below do not change during the four months. Answer Q1-Q4 income price of apple price of banana QP apple QP banana month January 160 3.50 3.00 18 20 February 160 3.50 2.50 20 16 March 220 2.50 3.00 26 24 April 160 2.50 3.00 20 16 1. Calculate the price elasticity of demand for apple. Pick two relevant months for the cal- culation and explain why you picked the two months of your choice. Show your calculations neatly. (3 points) 2. Is it True or False that we can say that price elasticity of demand for apple is elastic? Explain the reason. (1 point) 3. Calculate the income elasticity of demand for banana. Pick two relevant months for the calculation and explain why you picked the two months of your choice. Show your calcula- tions neatly. (3 points) 4. Is it True or False that we can say that banana is a luxury good? Explain the reason. (1 point)

Assume that factors that may change demand but are not below do not change during the four months. Answer Q1-Q4 income price of apple price of banana QP apple QP banana month January 160 3.50 3.00 18 20 February 160 3.50 2.50 20 16 March 220 2.50 3.00 26 24 April 160 2.50 3.00 20 16 1. Calculate the price elasticity of demand for apple. Pick two relevant months for the cal- culation and explain why you picked the two months of your choice. Show your calculations neatly. (3 points) 2. Is it True or False that we can say that price elasticity of demand for apple is elastic? Explain the reason. (1 point) 3. Calculate the income elasticity of demand for banana. Pick two relevant months for the calculation and explain why you picked the two months of your choice. Show your calcula- tions neatly. (3 points) 4. Is it True or False that we can say that banana is a luxury good? Explain the reason. (1 point)

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter10: Inventory

Section: Chapter Questions

Problem 1PA: When prices are rising (inflation), which costing method would produce the highest value for gross...

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