Identify the relationship between the two goods

Assignment Help Business Economics

Reference no: EM13886675

For the following three cases, use a midpoint formula to calculate the coefficient for the cross elasticity of demand and identify the relationship between the two goods (complement, substitute, or independent).

a) The quantity demanded for good A increases from 300 to 400 as the price of good B increases from $1 to $2. Coefficient: ___________________ Relationship: _______________________

b) The quantity demanded for good J decreases from 2000 to 1500 as the price of good K increases from $10 to $15. Coefficient:__________________ Relationship:__________________________

c) The quantity demanded for good x increases from 100 to 101 units as the price of good Y increases from $8 to $15. Coefficient: _______________ Relationship:____________________

Reference no: EM13886675

Questions Cloud

Regional economic integration and the consequent increase : Regional economic integration and the consequent increase in increased dependence on each other creates incentives for political cooperation between the neighboring states and reduces the potential for violent conflict.

Innovations are proven to pose no risks : Explain: Because it is better to be safe than sorry, ie to exhibit precaution, the government should ban adoption of technologies like genetically modified organisms and medicines like ebola treatments until such innovations are proven to pose no ris..

Welfare loss triangle occur to total surplus : Assume the equilibrium quantity is 10M of automotive wiper blades at an equilibrium price of $2 per blade. If the government imposes a limit of 8M wiper blades for the private sector in order to support an increased need for rubber in classified oper..

Estimate inviscid core length-entrance length : Water is ?owing in a 2-cm-diameter pipe with a ?ow rate of 0.0002 m3=s. For an entrance that provides a uniform velocity pro?le, estimate inviscid core length and the entrance length if the water temperature is (a) 20, (b) 40, (c) 60, and (d) 80-C..

Identify the relationship between the two goods : For the following three cases, use a midpoint formula to calculate the coefficient for the cross elasticity of demand and identify the relationship between the two goods (complement, substitute, or independent).

Explain the meaning of cultural competence : Explain the meaning of cultural competence, its benefits and limits. Describe how the demand-for-services should or should not shape Our Covenant Health Center's approach to its community and original mission

If an allocation of economic resources is not efficient : If an allocation of economic resources is not efficient, then some of the potential gains from trade among buyers and sellers are not being realized. Explain why an allocation is inefficient if a good is not being produced by the sellers with the low..

What is magnetic field strength halfway between two wires : Two parallel wires are positioned at d = 37.5 cm apart. Initially a current I 1 = 5.19 A flows up the screen through wire 1, and wire 2 has no current in it. What is the magnetic field strength halfway between the two wires?

Imposes binding price ceiling on competitive market : When the government imposes a binding price ceiling on a competitive market, a shortage of the good arises, and sellers must ration the scarce goods among the large number of potential buyers.

User Account

All Pages