Respuesta :
The cross elasticity of lorena's demand for golf at $60 is -2.8, the cross elasticity of lorena's demand for golf at $45 is -3.50, the cross elasticity of lorena's demand for golf at $30 is -4.69.
Cross elasticity between golf rounds and movie tickets= Percentage change in quantity demand of golf rounds /Percentage change in price of movie tickets)
cross elasticity with the midpoint approach:
at a price of $60
Cross-price elasticity using the midpoint technique = [(P2-P1)/(P2+P1)/2] ÷ [(Q2-Q1)/(Q2+Q1)/2]
new quantity Q2 = 10
Old Quantity Q1 = 15
New price P2 = $15
Old price P1 =13
by substituting the above values:
=[(15-13)/(15+13)/2] ÷ [(10-15)/(10+15)/2]
=-2.28 ÷ -5/25/2
=5/12.5 ÷ 2/14 equals
= -0.4/0.1429
= -2.8
at a price of $45
New amount Q2 = 15
Old Quantity Q1 = 25
New price P2 = $15
Old price P1 =13
by substituting the above values:
=[(15-13)/(15+13)/2] ÷ [(15-25)/(15+25)/2]
=-10/40/2 by 2/28/2.
=[-10/20] ÷ [2/14]
= -0.5/0.1429
= -3.50.
when a $30 price
New Quantity Q2 = 20
Old Quantity Q1 = 40
New price P2 = $15
Old price P1 =13
by substituting the above values:
=(15-13)/(15+13)/2÷ (40-20)/(40+20)/2
=2/28/2 ÷ -20/60/2
= -20/30 ÷ 2/14
= -0.67/0.1429
= -4.69.
The cross price elasticity differs from one another. Because it's negative, the goods are complementary.
learn more about cross elasticity here
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