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Suppose that during a given year : (1) the price of television sets increases by 4% in Japan, (2) the dollar depreciates by 5% with respect to the yen (Japanese currency), (3) consumer incomes in the U.S. increase by 3%, (4) the price elasticity of demand for imported TV sets in the U.S. is 1.5, and (5) consumers' income elasticity of demand for TV sets in the U.S. is 2.1. If the price of the imported TV was $300 in the U.S. at the beginning of the year, approximately how much would you expect the price of the same imported TV set to be in the U.S. at the end of the year2. By how much would the quantity demanded of imported TV sets in the U.S. change as a result of the increase in consumer income alone?
3. By how much would teh demand for imported TV sets in teh U.S change as a result of the change in price alone?
4. By how much would the demand for imported TV sets in the U.S. change as a result of both a change in price and in incomes?
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