calculate the coefficient of elasticity for each product
Question # 00151888
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Updated on: 12/14/2015 11:15 AM Due on: 01/13/2016
| Quantities Purchased | Quantities Purchased | |
| Prices | Product X | Product Y |
| $6 | 40 | 50 |
| $4 | 50 | 80 |
| Quantities Purchased | Quantities Purchased | |
| Income | Product X | Product Y |
| $30,000 | 25 | 20 |
| 50,000 | 10 | 30 |
(Part A) Using the midpoint formula, calculate the coefficient of elasticity for each product. (8 points)
(Part B) Calculate the income elasticity for each product and characterize each. (12 points) (Points : 20)
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Solution: calculate the coefficient of elasticity for each product