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Suppose that during a given year: (1) the price of TV setsincreases by 4% in Japan, (2) the dollar depreciates by 5% withrespect to the yen, (3) the consumers' incomes in the U.S.increase by 3%, (4) the price of elasticity of demand for importedTV sets in the U.S. is -1.5, and (5) consumers' incomeelasticity of demand for TV sets in the U.S. is 2.
A)If the price of the imported TV set was $300 in the U.S. at thebeginning of the year, approximately how much would you expect theprice of the same imported TV set to be in the U.S. at the end ofthe year?
B)By how much would the quantity demanded of imported TV sets inthe United States change as a result of the change in priceonly?
C)By how much would the demand for imported TV sets in the U.S.change as a result of the increase in consumers' incomealone?
D)By how much would the demand for imported TV sets in the U.S.change as a result of both the change in price and incomes?
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