1. If a 10% decrease in the price of gas causes a 30% increase in the demand for standard sized autos, then the cross-price elasticity of demand is:
2. If the price elasticity of demand of for gasoline is 1.8, then a 15% decrease in quantity demanded is caused by a:
3. A 10% increase in the price of 40 inch LCD televisions which have a price elasticity of demand of 2.5 will cause a:
4. A business newscast claims that the median home price of existing homes fell from $450000 to $350000. Over the same time period the quantity of these homes sold fell from 4100000 to 3900000. Using an arc elasticity formula, calculate the arc elasticity implied. The formula is:
5. The demand for a product is income elastic with an elasticity coefficient of 2.00. If there is a 35% increase in income then what will the increase in demand be?
6. The cross-price elasticity of biscotti demand with respect to the price of Lattes is -2.20 (Lattes and biscotti are complementary goods). If the price of Lattes increases 20% what would you expect the demand for biscotti to be?