Please answer A,B and D. esThe table shows the average income of households and the quantity demanded of products M and N at different prices and levels ofincome.McGrawHillYear1234080Average Income$44,00044,00044,00050,000Price of M$2.402.702.702.70Quantity of M105958595a) What is the price elasticity of demand for product M between years 1 and 2? Round your answers to 2 decimal places.0.87Price of N$18182626b) What is the price elasticity of demand for product N between years 2 and 3? Round your answers to 2 decimal places.Quantity of N8208007808104c) What is the income elasticity of demand for product M between years 3 and 4? Round your answers to 2 decimal places.-0.31d) What is the income elasticity of demand for product N between years 3 and 4? Round your answers to 2 decimal places.e) What is the cross-elasticity of demand of product M for a change in the price of product N between years 2 and 3? Round youranswers to 2 decimal places and remember to enter a minus (-) sign to indicate negative values.< Prev5 of 8Next >

Solutions for sub-parts a, b and d: Price elasticity of demand measures the responsiveness in…

e table shows the average income of households and the quantity demanded of products M and N at different prices and levels of come. Year 1 2 Average Income $44,000 44,000 44,000 50,000 a) What is the price elasticity of demand for product M between years 1 and 2? Round your answers to 2 decimal places. 3 4 Price of M Quantity of M $2.40 2.70 2.70 2.70 Price of N $18 18 26 26 105. 95 85 95 087 Quantity of N 820 800 780 810 b) What is the price elasticity of demand for product N between years 2 and 3? Round your answers to 2 decimal places. c) What is the income elasticity of demand for product M between years 3 and 4? Round your answers to 2 decimal places. d) What is the income elasticity of demand for product N between years 3 and 4? Round your answers to 2 decimal places. e) What is the cross-elasticity of demand of product M for a change in the price of product N between years 2 and 3? Round your dicate negative values.

e table shows the average income of households and the quantity demanded of products M and N at different prices and levels of come. Year 1 2 Average Income $44,000 44,000 44,000 50,000 a) What is the price elasticity of demand for product M between years 1 and 2? Round your answers to 2 decimal places. 3 4 Price of M Quantity of M $2.40 2.70 2.70 2.70 Price of N $18 18 26 26 105. 95 85 95 087 Quantity of N 820 800 780 810 b) What is the price elasticity of demand for product N between years 2 and 3? Round your answers to 2 decimal places. c) What is the income elasticity of demand for product M between years 3 and 4? Round your answers to 2 decimal places. d) What is the income elasticity of demand for product N between years 3 and 4? Round your answers to 2 decimal places. e) What is the cross-elasticity of demand of product M for a change in the price of product N between years 2 and 3? Round your dicate negative values.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter5: Elastic And Its Application

Section: Chapter Questions

Problem 10PA

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