Question
The AIROD Aircraft Company manufactures small, pleasure-use aircraft. The following data pertaining to AIROD Aircraft Company's sales, selling prices and consumers' personal income were collected:
The AIROD Aircraft Company manufactures small, pleasure-use aircraft. The following data pertaining to AIROD Aircraft Company's sales, selling prices and consumers' personal income were collected:
| Year | Aircraft Sales (Units) | Average Price ($ millions) | Disposable income ($ millions) |
| 2013 | 8,000 | 100 | 650 |
| 2014 | 10,000 | 89.50 | 610 |
| 2015 | 8,000 | 109.5 | 590 |
- Estimate the arc price elasticity of demand using the 2013 and 2014 data. Explain.
- Estimate the arc income elasticity of demand using the 2013 and 2014 data. Explain
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Auditing Cases An Active Learning Approach
Authors: Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt
2nd Edition
0130674842, 978-0130674845
