We can utilize elasticity calculations to measure the impact a change in price on one good has on the demand for another good in the marketplace

We can utilize elasticity calculations to measure the impact a change in price on one good has on the demand for another good in the marketplace. For example, in the two tables below, we can compare price changes in beef to the quantity demanded changes in pork. 

By performing elasticity calculations with Beef Price changes and the resulting pork quantity changes, we can distinguish which of the three following relationships the two products have in the marketplace: Substitutes, Complements, or Independents.

Data collected for Beef and Pork is as follows:

Question 1

What is the Cross-Price Elasticity of Demand coefficient for Pork in relation to the change of beef prices going from $2.10/lb. to $2.25/lb.?

*Please round your solutions to the nearest hundredth to the right of the decimal.

Question 2

What is the Cross-Price Elasticity of Demand coefficient for Pork in relation to the change of beef prices going from $2.25/lb. to $2.70/lb.?

*Please round your solutions to the nearest hundredth to the right of the decimal.

Question 3

Based on the Cross-Price Elasticity of Demand coefficients derived in the previous two questions, the relationship between Beef and Pork would be considered which of the following?

Group of answer choices

Substitute

Complement

Independent

Question 4

What is the most likely cause for the changes in pork quantity demanded in the table shown above?

Group of answer choices

Changes in Beef Prices

Changes in Pork Prices

Question 5

Based on Cross-Elasticity of Demand coefficients derived in the first two questions, if the price of beef were to decrease, what would most likely happen to the demand for pork?

Group of answer choices

Decrease

Increase

Remain Unaffected