Question 1 TECO1113D Microeconomics Tutorial 6 The table below shows the price, quantity of two goods and income level of a buyer Price of good B Quantity Quantity Income level (RM) demanded of demanded of (RM) good B (units) good C (units) 7 20 16 2000 10 12 16 4000 3) Calculate the price elasticity of demand for good B and comment on the elasticity of good B. b) Calculate the elasticity of income for good B when income increases from RM 2000 to RM 4000. Determine the type of goods for good B. c) Calculate the elasticity of income for good C when income increases from RM 2000 to RM 4000. Determine the type of goods for good C. d) Calculate the cross price elasticity for good B and C. Determine the type of goods for good B and C. Qu estion 2 The table below shows the price and quantity demanded of good A and good B. Price of good A Quantity Price of good B Quantity (RM) demanded good (RM) demanded good A (units) B (units) 10 24 16 20 8 40 6 60 a) Calculate the price elasticity of demand for good A when the price rises from RM 6 to RM 8. State the elasticity of demand for good A. b) Suppose that the current price for good A is RM 8. If the price goes up to RM 10, calculate the elasticity and the change in total revenue? c) Calculate the price elasticity of demand for good B when the price rises from RM 14 to RM 16. State the elasticity of demand for good B. d) Suppose that the current price for good B is RM 12. If the price goes up to RM 14, calculate the elasticity and the change in total revenue? State a possible example of good B. Question 3 The table below shows the price of good A, quantity demanded for good B, C and D and level of income. Quantity demanded (units) Price of good A (RM) a) Calculate the cross price elasticity between good A and good B when the price of good A increases from RM 2 to RM 3. State the relationship between good A and good B. b) Calculate the cross price elasticity between good A and good C when the price of d) good A increases from RM 2 to RM 3. State the relationship between good A and good C. Calculate the cross price elasticity between good A and good D when the price of good A increases from RM 2 to RM 3. State the relationship between good A and good D. Calculate the income elasticity for good D when the income increases from RM 300 to RM 400. Identify the kind of good D and state a possible example. Calculate the income elasticity for good B when the income increases from RM 300 to RM 400. Identify the kind of good B and state a possible example