What is the sign of the cross price elasticity, Microeconomics

Assignment Help:

Australians are turning to scooters to combat escalating petrol prices. After a slump in the March quarter this year, demand for scooters was up by more than 7 per cent in the first half of 2008, according to figures released today by the Federal Chamber of Automotive Industries (FCAI).

a. Do you agree that rising petrol prices are associated with the change in sales of scooters? What is the sign of the cross price elasticity of demand for new scooters with respect to petrol prices?

b. The report also found that '(i)n scooters, SYM led the way with 14.6 per cent of the market ahead of Piaggio on 13.2 per cent, Yamaha 11.9 per cent, Vespa 10.2 per cent and Honda 7.5 per cent'. Comment on the difference between the price elasticity of demand for each brand of scooter compared with the price elasticity of demand for all scooters.

 

 


Related Discussions:- What is the sign of the cross price elasticity

Comparison with other countries, Comparison with Other Countries: The ...

Comparison with Other Countries: The basic purpose of this type of comparison is that: (i) it helps us to know the potentials of growth that can be built up in an economy,

Economic reforms and reduction of regional disparities, Economic Reforms an...

Economic Reforms and Reduction of Regional Disparities: Another important objective of development is to reduce regional disparities. Government has been helping the backward

Lending capacity of cash, Assume the banking system contains: Total Rese...

Assume the banking system contains: Total Reserves                         $ 80 billion Transactions Deposited          $800 billion Cash held by public                 $1

Accountant, In this assignment you will apply consumer choice theory and ma...

In this assignment you will apply consumer choice theory and marginal analysis to business problems. Consider each of the following products and services: a pair of tickets to a s

Problems of common property resource , Normal 0 false false ...

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

Determines price and output in the long run, Problem 1: (a) Differentia...

Problem 1: (a) Differentiate between positive and negative externalities? Justify your answer using examples. (b) To what extent do government policies influence externali

Indifference curve, application of indifference curve analysis to the probl...

application of indifference curve analysis to the problem of exchange

Find the marginal products of capital and labour, A farmer produces maize a...

A farmer produces maize according to the following production function Q m = AK 1/3 L 2/3 Where Q m is output of maize, A = land, K = capital and L = labour Given that

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd