Arya likes to play golf The number of times per year that she plays depends on both the price of playing a round of golf as well as Ariya's income and the cost of other types of entertainment-in particular, how much it costs to go see a movie instead of playing golf The three demand schedules in the table below show how many rounds of golf per year Arya will demand at each pnce under three different scenarios. In scenario Dj Arya's income is $50,000 per year and movies cost $9 each In scenario D2. Aniya's income is also $50,000 per year, but the price of seeing a movie rises to $11. And in scenario Dz. Arya's income goes up to $70.000 per year, while movies cost $11. D2 Scenario D1 03 $70,000 $50,000 $50,000 Income per year Price of movie ticket Price of Golf $11 $9 $11 Quantity Demanded 15 10 $50 15 15 30 $35 25 50 20 $20 40 a. Using the data under D and D2, calculate the cross elasticity of Ariya's demand for golf at all three prices, (To do this, apply the midpoints approach to the cross elasticity of demand) At $50, cross elasticity At $35, cross elasticity = At $20, cross elasticity Is the cross elasticity the same at all three prices? (Click to select) Are movies and golf substitute goods, complementary goods, or independent goods? (Click to select) b. Using the data under D2 and D3. calculate the income elasticity of Ariya's demand for golf at all three prices. (To do this apply the midpoints approach to the income elasticity of demand) At $50, income elasticity of demand = At $35, Income elasticity of demand = At $20, income elasticity of demand Is the income elasticity the same at all three prices? No Arya likes to play golf The number of times per year that she plays depends on both the price of playing a round of golf as well as Ariya's income and the cost of other types of entertainment-in particular, how much it costs to go see a movie instead of playing golf The three demand schedules in the table below show how many rounds of golf per year Arya will demand at each pnce under three different scenarios. In scenario Dj Arya's income is $50,000 per year and movies cost $9 each In scenario D2. Aniya's income is also $50,000 per year, but the price of seeing a movie rises to $11. And in scenario Dz. Arya's income goes up to $70.000 per year, while movies cost $11. D2 Scenario D1 03 $70,000 $50,000 $50,000 Income per year Price of movie ticket Price of Golf $11 $9 $11 Quantity Demanded 15 10 $50 15 15 30 $35 25 50 20 $20 40 a. Using the data under D and D2, calculate the cross elasticity of Ariya's demand for golf at all three prices, (To do this, apply the midpoints approach to the cross elasticity of demand) At $50, cross elasticity At $35, cross elasticity = At $20, cross elasticity Is the cross elasticity the same at all three prices? (Click to select) Are movies and golf substitute goods, complementary goods, or independent goods? (Click to select) b. Using the data under D2 and D3. calculate the income elasticity of Ariya's demand for golf at all three prices. (To do this apply the midpoints approach to the income elasticity of demand) At $50, income elasticity of demand = At $35, Income elasticity of demand = At $20, income elasticity of demand Is the income elasticity the same at all three prices? No
