Thuiasi “Ip muniandy (2308990F.2036) Foc" 2 Date: _| Answer_an_Questions ~ (Question: | The following table shoe _ahe_ relationship _berween the price of goods ____ |8 and the quantity demanded for goods 8 and c- Price of 8 | Quantity Demanded | Gontity Oemonded cRM) for 8 (kg) for ¢ Cg) 5-00 No 200 A, 5-50 100 \Bo - 6:00 40 160 6-50 go two 1:00 10 lao Calcviate 4he price elasticity of demand for 8 if ? = —%lo change in_guantity demanded 1@o_= originar a Slo change in price Qi = new ¢Hy Od AA AQ = change ingty Od eo: @ x 10g 4Q,P | Po = original price j AP \ joo AP @ [P= new price =) [2 LAP = change in price i. The Price of B increases from RM6-00 4 RMS-50 (3 marks) d 2 AQ, B eds AQ’, fe [peso 92200 wie) AP @ ~~ AP | 25:50 G,:150 ol, = 0-100 y $00 $200 -IRo.y 5:00 . 50-560 (0 5:00~5:50 200 = 0 y 5.00 220 y 5-00 _ ~05 lO J -0-5 200 = 50 = 100 755 -lo0 (\ fe | : ___ Pep for B == 0°41 #XRelativery inerastic) PED for C= =I # (Relatively inelastic) j——Subject Date: Fi The Price of B increases from RM6-00 to RM6-50 - dz: AQ y fe hs AG y % P2600 Q=160\ Ap Ge AP. 026-5 Q=tH0 | 80 Ye B00 sn Dae 9 fs 6-09-6:50. 160 | = 10 = 20 y 6-00 _ 4 p0.5i . 70-5 . 160 - |emaeettco = 120 | -45 ~80 pep for B = —1:33 #CRalativery inelastic] pep for C = -1-5.4. (Relatively inetastie” iii. The Price of B decreases from RM7-00 to RM6-50 | _Fa=AQ y Po Ed2 AQ yf [e100 Qe 120 4P ‘Qo. ‘AP... Q [650 _Q.=Ido 2=7-00 10 = 10-80 y 1.00. = 120-10 y 7-00 10-650 Q,=80 100-6-50 ‘10 ‘1-00- 6-50 120 vs. y 1:00 = =20 y 1:00 os 10 0-5 120 = 10 2-140 35 Go a) PED for B= 72 4 (Relatively inetasti)! pep fore = -2- Relatively inet : |7 1 RP "Wwe the Price of 8 decreases from RM6:00 49 RMB-50 Fd=A0 y Po ap @ = 90-100. y 6-01 600-550 90 90 7) Peo for B ==!-33 HX (Reahvely inelastic) lf Ve The Price of B decreases from Ams-50 +0 RMS-00 Fd: AQ , fo Ap” = 100-10 y 50 550-50 100 FxlO y 5:50 0-5 10 = 255 50 Ed- AQ, Po _ AP Qe = 160-180. y 6:00-5:50 160 F220, O5 ace tr PED for C= 80 # (Perfectly elastic ) Fd= AQ y Po AP _Q = 180-200 y 5:50 5:59-5:00 180 = 220 y 5:50 0-5 18D = =o 40 Peo for B= hl (Relatively inetastec) PED = -1-22 4K (Retarvely inelastic ) for C© Question. 2 ee = —forravia =(Q1-Qo) , L¥o) ~@_ "-) nee aces en ee @ saa —}-Income____ Quantity_| Quantity | _ Quantity i _ y I P. a R 2000 | too | 80 4yooo 6000 $00 Tarculate + —— me increase from RMHOCO__ * i) Calcuiate the income claticity of demand when i 40. RM 6000. (1.5 mars) . - a _— —_— Pryor Ey=[(200-1507/150] x Yooo / (6000-4000) Pam = (50/150) x Cuaoo | 2000) - - Quegtity—> = 0:33. 2 a = 0-66 (norma goods) Eye[{i20-140) /tuo ] x 4000 / (6000-400. i =€20 /140)_x (4000 [2000) Gueat 143 X 2 286 (negative goods ey = [40 40) /4o]x 4000 / (6000-4000) _ (0/40) x (Yooo/2000) Oxd - - oe 0. (Zero ~ Sticky goods) —— Quantity _ R 7 wonNo pate. ‘iD Caicuate she income _elaticity of demand when income decrease from RMFOCO -4p_RM6000+. (1-5 marks) . P=3000 se Eye (ons 255] «Ban ea Bee) Be 6000 - oe ~ 50/2507) X (8000 /-2000), Quarts 0-2x -4 ry: cemenmeniaes __? ~ a7 8 (norma goods) = = I 7 ; || Ey=[(120-80)/80] x 8000 / (6000-8000) 5X =U (negative goods) rR _ - __-By= [40-4097 40 ]x 8000 / Cé000- 8000. _ — Quantity“ = (0140 x (8200 / -2000) e RQ => = ox -4 = ds.No pate “Question 3 Seen | | Price of xy T Quanity Oomanded| Quantity Demanded [Quantity Demanded! | try Hfor © car for E (Kg) for F (kg) 4o 5000 6000, $00 - een 50 4600 5000 Joo | E 60 Yooo 4yooo | 600 - | 10_ 3600 3000 500 80 3000 2000 490 | _ Ao 2500 tooo 300 il — _ Gd new -Qd old X09. J Qa oid 1 > P new — P old \ —__| P oid ma a) Calcviate cross price elasticity if price increase from RM50 to RMEO : a rae 4.000 = 4500. =500,__ - 4500 4500 TV"! 60-50. 10 94 c = 50 50 - ~wao0 = 50002-1000 9.9 7 = ____5000 5000 _-} 60-60. 10 = 9.9 50 50 0-2 fe _ _ zal 4 (negative ~ complementary goods) _ :no ome 'b) Calculate cross price elasticity i i xY and € (2-5 marks) | 3000-2000 . 1000 - | 2000 2.000 1 10-80 -10 | - go 80 0-5 / -0:125 ate # (negatives Compiementany B20) _Question 4 Price Qvansity 20 500 _ - =, lo oh ange in_quantity supplied — ——%a change in price _ ____.@) Price increase from Rm20 40 RMYO (2-5 monks) ____€s=[(1000-500)/ 40-20] x 20/500 2 (500/20) X 201500 5X 0.0} = | (unitary elastic soppy) b) Price increase from RMyo to EMGo (2:5 marks) _ [£1500 ~ 1000) /60-40] x 40/1000 (500 20) x 4oll0o Es ) Price _dgerease from RMIOO to RMSO (2-5 marks) 500)/80-100]x 100/500 es ong ee su a 500. /-20) alee 25 KNB ___= 33-25 CIneiastic supply)