You have the below data. Apply the midpoints formula to calculate the coefficient for the cross elasticity
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Question:
You have the below data. Apply the midpoints formula to calculate the coefficient for the cross elasticity of demand and classify the type of relationship between the two products.
(a)The quantity demanded for aspirin increases from 30 to 40 as the price of Tylenol increases from $0.10 to $0.20.
Coefficient: ______Relationship: ____elastic____________
(b) The quantity demanded for hamburger buns decreases from 3000 to 1500 as the price of hamburger increases from $5 to $10.
Coefficient: ______Relationship: __perfectly inelastic______________
(c)The quantity demanded for contact lenses remains 400 units as the price of Boston Celtics hats increases from $25 to $30.
Coefficient: ______Relationship: ___inelastic_____________
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