[Tutorial Week 6 [Muhammad limi Irfan Bin Ismail | BA aay 10103235 | sun 2016 [Question 2 | 9) | Cross elasticity of demand 13 measures the responsiveness or seneivity of quantity demanded for one product (Gx) duc toa change in the price of related product (Py). i. Qoos A | Qo Py, ~ Pe = 10 ~6 Xx ace 16 10.00 ~ 4:00 5-035 ¥ i. Good B Gor 32 Po = 4-00 Qos 3B Rs 10.00 sine G- Go x Po Qo Te = Po : 34-32 x 4:00 2 6.13 # 32 1-08 — 4.00Subject: | |i. Good A and Good x | = _ Complementary ii. Good B and Good x -_ Substitutes Ai ame = @ —@o x Po Go= 20 Po 300 Ge ho — Pe Qa = R= 500 = 1-30 x 300 20 $00 — 300 = 0-45 & Good © = inferior goods‘Sunject bo SEP DOIN Question 9 a Go = 500° Roz Rm $.a5 Gi = 4350 Pie Rm 3-45 in = @Q —@e x Po Qe % - Po | = 4350 -S000 x 5.26 Gooo 8.95 — 5.235 = - O18 # »| Go = 3700 Po = Rmi1¢00 Q. = 4900 R= RM 13400 Gp = _@i ~ So * Po | Qo P= Po | = 400 — 3700 % N\600 | 3300 13400 - 600 1 a tH = Luyary goods | ©) | \denkfy ood Y ] | | |Subject, nnn, a) Go = S600 Po = RM 3-45 Q = %436 Poze RmM10.55 4un= Qi -~ Go x Po Ge B- Po = 8440 - Scoo x 3.95 5600 lo.ss ~ 3-46 = 3.39% 2 i. Relationship between goods X and Y. = Subshtutes. ii. Deteminants of price ela stcity of Deeply. — Habits = Time __pernrod Analysis