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

Economic efficiency, Economic Ef ficiency The effort to ma...

Economic Ef ficiency The effort to making products and services in the least costly way without sacrificing excellence.

What are the main weaknesses of using demand-side policies, What are the ma...

What are the main weaknesses of using demand-side policies? Trade-off issues a) Growth and low unemployment often come with inflation b) Government stimulatory policies m

Define injections and withdrawals, Define injections and withdrawals.  ...

Define injections and withdrawals.   "The inflows in circular flow of income are known as injections". Investment, government spending and exports are there in injections "The

Cholesterol within acceptable limits, The recent flooding in the upper Midw...

The recent flooding in the upper Midwest destroyed a important proportion of the corn crop.  Though, it has been discovered that corn oil is far better in keeping cholesterol withi

Water meter replacement program, Water Meter Replacement Program: Typi...

Water Meter Replacement Program: Typically water providers install meters at each service address, read meters monthly and charge customers according to their usage. In resid

Price gouging, In John Stossel's article, "In Praise of Price Gouging", Sto...

In John Stossel's article, "In Praise of Price Gouging", Stossel argues that a law banning price gouging would result in a two-block line for gasoline after Superstorm Sandy. a.

Financial securities, Securitization: A process in that financial relations...

Securitization: A process in that financial relationships (like loans) are converted into financial securities or assets (like bonds) that can be bought and re-sold in securities m

Managerial econ, what will cause a firms demand curve to shift: a a change ...

what will cause a firms demand curve to shift: a a change in sellers profit associated with the good or service b change in technology for good cchange in non price variable in dem

Elasticities and secondary axis graphs, Create a chart with a secondary ver...

Create a chart with a secondary vertical axis to plot related data series with different scales. Use the Combination Chart Fashion worksheet to create and format a combination c

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