II. Compute for the income or cross price elasticity. Write the resulting elasticity and the type of good as required in some of the numbers.

1- Suppose income falls 1 percent in a year and as a result construction of new parks falls from 18 million to 16 million units annually. The value of the income elasticity of demand for parks is:

2- An decrease in income from 3,000 to 2,000 causes demand for restaurant meals to decrease from every week to twice a month. Calculate for income elasticity and identify the type of good.

3- Solve for the elasticity of demand for Good X with respect to the price of Good Y.

Demand for	Original Price	Original Quantity	New Price	New Quantity
Commodity X		30		20
Commodity Y	21	65	25	50

4- Calculate the income elasticity of demand for each of the following goods. Write the type of elasticity/type of good

Goods Type	Qty Demand at Income = 10000	Qty Demand at Income = 20000
Refrigerator	10	25
Sofa	4	5
Bread	3	2