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For cross price elasticity, explain the elasticity COEFFICIENT for SUBSTITUTE

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Question

1. For cross price elasticity, explain the elasticity COEFFICIENT for SUBSTITUTE;products;2. Explain the elasticity coefficients for income elasticity by identifying and;explaining the correct coefficients for NORMAL & INFERIOR goods;3. Elaborate and provide EXAMPLES of the following determinants of elasticity of;demand;a. Share of consumer income devoted to a good: Compare a low cost good to;a high cost good, and discuss an increase in cost of 10% on each good;how would consumers react?;b. Consumer's time horizon: Elaborate on this determinant and provide an;example of it;4. USE the two GRAPHS on the second page of this document and explain the;relationship between elasticity of demand and total revenue for;a. Elastic range;b. Inelastic range;c. Unit-elastic range;NOTE: Look at the different values in the attached graph and formulate the;response to these three ranges as such: "Elastic range occurs as the price declines from;$___ to $___ and quantity demanded increases from ___ to ___ units which results in;total revenue from ___ to;*Remember to use ACTUAL units from the graphs below.

 

Paper#31541 | Written in 18-Jul-2015

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