Question
The demand for golf clubs has increased from 6,000 to 8,000 after the price of golf balls has fallen from $1.80 to $1.40. (a) Calculate
The demand for golf clubs has increased from 6,000 to 8,000 after the price of golf balls has fallen from $1.80 to $1.40.
(a) Calculate the cross-price elasticity of demand between golf clubs and golf balls using the mid-point formula. (15 marks)
(b) Based on your answer in part (a), what do you think is the economic relationship between these two goods? (5 marks)
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Survey of Economics
Authors: Irvin B. Tucker
8th edition
1111989664, 978-1133713357, 1133713351, 978-1111989668
