Income and Cross-Price Elasticity

Demand moves for more than price

Normal goods split by size

Cross-price elasticity

Reading the whole table

When household incomes in a city rise by 10 percent, transit bus ridership falls by 4 percent and restaurant meals rise by 18 percent. What are the income elasticities, and how are the goods classified?

When the price of game consoles falls by 10 percent, sales of video games rise by 6 percent, while sales of streaming movie subscriptions fall by 2 percent. What do these cross elasticities tell us?

The price of tea rises by 8 percent and the quantity of coffee demanded rises by 4 percent, with the tea price change taken as the cause. Compute the cross-price elasticity of demand for coffee with respect to the tea price and write the number.

When incomes rise 10 percent, restaurant meals rise 15 percent, second-hand furniture falls 6 percent, and toothpaste stays flat. What are the classifications?

The price of printers falls by 10 percent and the quantity of ink cartridges demanded rises by 7 percent. What does the cross-price elasticity say about the relationship?

Household incomes rise by 10 percent and restaurant dining rises by 15 percent. Compute the income elasticity of demand for restaurant meals, and write the number.