The following table provides you the estimated price, cross, and income elasticities for preferred commodities. Indicate from the price elasticities (e) if the demand is elastic or inelastic; from the cross elasticities (exy) if the commodities are substitutes or complements; and from the income elasticity (eM) whether the commodity is a luxury, a necessity, or an inferior good. Price Elasticity of Demand (e) Cross Elasticity of Demand (exy) Income Elasticity of Demand (eM) Beef 0.92 Beef, Mutton 0.28 Butter 0.42 Potatoes 0.31 Tea, Coffee 0.67 Margarine -0.20 Sugar 0.31 Coke, Pepsi -0.61 Air Coolers 0.35 Electricity 1.20 Sugar, fruits -0.28 Utilities 0.20 Restaurant Meals 2.21 Electricity, natural gas 0.2 Burger o’ Clock 1.48
The following table provides you the estimated price, cross, and income elasticities for preferred commodities. Indicate from the price elasticities (e) if the demand is elastic or inelastic; from the cross elasticities (exy) if the commodities are substitutes or complements; and from the income elasticity (eM) whether the commodity is a luxury, a necessity, or an inferior good.
|
|
Cross Elasticity of Demand (exy) |
Income Elasticity of Demand (eM) |
|||
|
Beef |
0.92 |
Beef, Mutton |
0.28 |
Butter |
0.42 |
|
Potatoes |
0.31 |
Tea, Coffee |
0.67 |
Margarine |
-0.20 |
|
Sugar |
0.31 |
Coke, Pepsi |
-0.61 |
Air Coolers |
0.35 |
|
Electricity |
1.20 |
Sugar, fruits |
-0.28 |
Utilities |
0.20 |
|
Restaurant Meals |
2.21 |
Electricity, natural gas |
0.2 |
Burger o’ Clock |
1.48 |
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