# Economics questions help

Check the file below!!

Question 1

The table below shows the number of coffees bought each day in the greater Hobart area at a variety of prices.

Price (\$) Quantity 6 0 5 3000 4 6000 3 9000 2 12000 1 15000 0 18000

Calculate the price elasticity of demand for coffee when the price of coffee is \$3.  Carefully interpret your answer.  If all coffee shops increased the price of coffee to \$4, what would happen to total revenue?  Explain your conclusion.

Question 2

Good x and good y are food items that can be found in your local grocery store.  We have the following information about the demand for each of the goods.  When the price of good x rises from \$0.80 to \$1, the quantity of good y purchased at the grocery store rises from 60 units per week to 75 units per week. Based on this information, calculate the cross-price elasticity of demand.  Carefully interpret your answer.   What is the relationship between the two goods?  Explain your conclusion.

Question 3

The table below shows the relationship between income and the quantity demanded of good z.

Income (\$) Quantity 20000 60 30000 110 40000 150 50000 180 60000 200

Calculate the income elasticity of demand when income changes from \$40000 to \$50000.  Carefully interpret your result.  Characterize the relationship between income and the quantity demanded of good z.

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Question 4

Suppose that you run a tutoring service for economics students.  The table below reports the demand for your services by 8 students per week.  In the table are reported each student’s reservation price of a tutoring session per week.  Note that each student demands at most one tutorial session per week.