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In class, students could purchase four goods, namely, a can of coke, a snickers bar, a twinkie, and a carton of milk. They had an
In class, students could purchase four goods, namely, a can of coke, a snickers bar, a twinkie, and a carton of milk. They had an income of five dollars to be spent on each of the four goods. Each student had to spend all five dollars. On Day 2, the price of Snickers doubled to two dollars. On Day 3, the price of Snickers went back down to $1 but income increased to $8. All the students' quantities were summed together and gave the following results.
Day 1: Market Quantities | Day 2: Market Quantities | Day 3: Market Quantities | |
Can of Coke | 39 | 42 | 63 |
Snickers Bar | 55 | 41 | 82 |
Twinkie | 35 | 28 | 77 |
Carton of Milk | 54 | 41 | 69 |
Using the information from the table answer the following questions:
- Draw the demand curve for Snickers Bars
- Price elasticity of demand for Snickers
- Cross price elasticity of demand for Coke
- Cross price elasticity of demand for Twinkies
- Cross price elasticity of demand for Milk
- Income elasticity of demand for Snickers
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