What is the price elasticity of demand coefficient for Good X between the prices of Good X of $4 to $5? (Round to hundredth please.) (No work needed.)
Row | Price of Good X | Quantity Demand of Good X | Quantity Supply of Good X | Price of Good Y | Buyer's Income |
|---|---|---|---|---|---|
1 | $1 | 40 | 12 | $10 | $100 |
2 | 2 | 40 | 15 | 11 | $120 |
3 | 2 | 36 | 15 | 13 | $110 |
4 | 4 | 10 | 28 | 13 | $105 |
5 | 5 | 9 | 35 | 14 | $95 |
6 | 6 | 8 | 50 | 12 | $90 |
7 | 7 | 3 | 55 | 9 | $90 |
Use this table for ALL calculations. Heads up...there are NO mistakes in this table. The table may or may not represent functions that you are familiar with. FOCUS only on the parts of the table that are requested in your problem.
Using the midpoint formula and the table above, when the price of Good Y increases from $10 to $11 the cross price elasticity of Y and X is , implying the relationship between Good X and Good Y over this price range is .
Between 0 and 1
Between 1 and Infinity
The price effect for Good Y is 0 between rows on the table.
Percent Change in Price of Good X
Using the table above. When performing the total revenue test for Good X from rows 3 to row 4, the price from $2 to $4. At the same time, total revenue from to . These results would indicate that demand is over this price range, given that both price and quantity do change by some amount.
$72
Based on the table, the price elasticity of supply toward Good X would be calculated by setting up the formula of (/ ) divided by (/). We can also condense this formula into /.