1. If the price of a NattyLight increased by 4 % and consumers responded by purchasing 20 %less Natty Light, the absolute value of price elasticity of demandfor Natty Light wouldbe
2. If the price of a NattyLight decreased by 4 % and consumers responded by purchasing 2 %more Natty Light, the absolute value of price elasticity of demandfor Natty Light would be:
3 (You'll have to think reallyhard about this one!) No matter the price of coffee atOtto's, I always spend $20 a week on coffee. What is theabsolute value of my price elasticity of demand for coffee?
4 If the absolute value ofthe price elasticity of demand for a product is 1.5, and the priceof a product increased 30 percent, then the quantity demanded willdecline by:
5 The price of good Xincreases by 20% and the demand for good Y does not change. What isthe cross price elasticity?
6 Chad's income went from $1000 per week to $1500 per week.As a result he increased his consumption of steak from 1 pound aweek to 3 pounds a week. Based on his consumption patterns,what is the income elasticity of steak for Chad.