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#### (1) Consider the apple juice and orange juice markets

###### Economics

(1) Consider the apple juice and orange juice markets. Suppose the current market price of a half gallon of apple juice is \$2.50 and at this price 18 bottles of apple juice are demanded. Also suppose the current market price for a half gallon of orange juice is \$3.25 and at this price, 17 bottles of orange juice are demanded. When the price of a half gallon of orange juice increases to \$3.75 and the price of apple juice remains unchanged, the quantity demanded of orange juice decreases to 14 bottles and the quantity of apple juice increases to 22 bottles. Using the mid-point method, what is the correct price elasticity of the demand for apple juice with regard to the price of orange juice? (2.) Suppose that in year 1, Jane's quantity demanded of bus rides is 17 per week, when the price of each bus ride is \$1.50 and her income is 20,000. In year 2 Jane rides 10 times a week when he price is \$1.50 each ride and her income is 30,000. Using the midpoint method what is Jane's income elasticity of demand for bus rides between year 1 and 2?

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