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AP Microeconomics Mkt 3 E a Define Measures of Elasticity B Explain Using Graphs Where Appropriate Measures of Elasticity and the Impact of a Topic 2 5 Questions

Practise calculating income and cross-price elasticities, using their signs to classify goods, and converting changes in income or related prices into demand responses.

Syllabus
Effective Fall 2022
Course
AP Microeconomics

Exam points

  • calculate income elasticity from percentage changes in quantity demanded and consumer income
  • use the sign of income elasticity to classify a good as normal, inferior or income-neutral
  • calculate cross-price elasticity from one good's quantity change and another good's price change
  • use the sign of cross-price elasticity to identify substitutes, complements or unrelated goods
  • apply a given elasticity to calculate a new quantity demanded and trace the corresponding demand shift

AP Microeconomics Mkt 3 E a Define Measures of Elasticity B Explain Using Graphs Where Appropriate Measures of Elasticity and the Impact of a Topic 2 5 Questions question 1

[Maximum number: 1]

The table provided shows the marginal utility for Lucy when she consumes Good X and Good Y.

Table for Question AP Microeconomics Mkt 3 E a Define Measures of Elasticity B Explain Using Graphs Where Appropriate Measures of Elasticity and the Impact of a Topic 2 5 Questions question 1 — AP Microeconomics

Suppose the price elasticity of demand for Good X is -2.0, the price elasticity of demand for Good Y is -0.8, and the cross-price elasticity of demand between Good X and Good Y is +1.6. Are goods X and Y complementary goods, substitute goods, normal goods, or inferior goods? Explain.

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