Using the midpoints approach to the cross elasticity of demand-calculate the cross eleasticity the demand for golf at all 3 prices.
Price Demand1 D2 D3
50 15 10 15
35 25 15 30
20 40 20 50
D1 -Income $50k per yr, movies $9
D2 -Income $50k -movies $11
D3 -Income $70k -movies $11
Using D2, D3, calculate income elasticity of demand for golf.
McConnell, Microecon 19e
Chap 4 -Problem #7
1 answer