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@elasticity of Supply and Demand Worksheet
@elasticity of Supply and Demand Worksheet
3. Use the information in the table below to identify the income elasticity type of each of the following products, A to E.
4. For the following goods, would you expect them to have price elasticities of demand greater or less than 1? Place the good in the table
accordingly.
NAME:
Goods Elastic (> 1) Inelastic (< 1)
6. The following table shows the cross price elasticities for several goods:
a) Explain the sign of each of the cross price elasticities and state what it says about the relationship between the two goods.
b) Note the difference in size between the cross price elasticities for the two types of burgers and the butter and margarine. Why is the elasticity so
much higher for butter and margarine do you think?
c) What would a 5% increase in the price of Pepsi do to the amount of Coke demanded?
d) How would a 10% decrease in the price of gasoline affect the quantity of SUVs demanded?