1. GymTime and WeightWorld both offer gym memberships. Suppose GymTime lowered the price of its membership by 17%. As a result, WeightWorld experienced a 18% decline in the quantity demanded of their gym memberships. What is the of the cross-price elasticity between the two gym memberships? Include a negative sign if applicable, and round your answer to two decimal places.
2. Suppose a 19% increase in income led to a 33% increase in quantity demanded for smartwatches. Smartwatches have an income elasticity of _________. Include a negative sign if applicable, and round your answer to two decimal places.
3. Refer to the income elasticity for smartwatches that you calculated in the previous question. Smartwatches are a(n) [ Select ] ["inferior", "normal"] good and are considered a [ Select ] ["luxury", "necessity"] .
4. Suppose that at a price of 8, SweetShop sells 58 cupcakes. When they lower the price to 4, the quantity of cupcakes sold rises to 68. At a quantity of 58, SweetShop's total revenue is $_____.
5. Refer to the previous question about SweetShop's cupcakes. Find total revenue after SweetShop lowered the price. Based on what happened to total revenue when the price decreased, demand for SweetShop's cupcakes must be [ Select ] ["elastic", "inelastic", "unit elastic"] .