Microeconomics

Problem 06-07 (algo) Arlya 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 Arlya'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 Arlya will demand at each price under three different scenarios. In scenario DJ. Arlya's Income is $60.000 per year and movies cost $11 each. In scenario D2. Artya's Income is also $60.000 per year, but the price of seeing a movie rises to $13. And In scenario D3. Arlya's Income goes up to $80,000 per year, while movies cost $13. Scenario D1 D2 D3 Income per year $60,000 $60,000 $80,000 Price of movie ticket $11 $13 $13 Price of Golf Quantity Demanded $55 15 10 15 $40 25 15 30 $25 40 20 50 Instructions: Round your answers to two decimal places. If you are entering any negative numbers be sure to Include a negative sign (-) In front of those numbers. a. Using the data under Dj and D2. calculate the cross elasticity of Artya's demand for golf at all three prices. (To do this, apply the midpoints approach to the cross elasticity of demand.) At $55, cross elasticity = At $40. cross elasticity = At $25, cross elasticity = Is the cross elasticity the same at all three prices? [Click to selec v ]. Are movies and golf substitute goods, complementary goods. or Independent goods? [Click to selec b. Using the data under D2 and D3. calculate the Income elasticity of Arlya's demand for golf at all three prices. (To do this, apply the midpoints approach to the Income elasticity of demand) At $55, Income elasticity of demand -[ At $40, Income elasticity of demand - At $25, Income elasticity of demand