KkkkKkkk156g
Badges: 0
Rep:
?
#1
Report Thread starter 3 years ago
#1
an individual spends all his income on two goods X and Y. if the rise in the price of good x, the quantity purchased of good y remains unchanged. what is price elasticity demand for x?
0
reply
FopePrancis
Badges: 12
Rep:
?
#2
Report 3 years ago
#2
Is this A Level Econ, because we didn't seem to cover this in GCSE
0
reply
FopePrancis
Badges: 12
Rep:
?
#3
Report 3 years ago
#3
(Original post by Paracosm)
Perhaps you should be doing your own homework….

What subject is this, please? It doesn't go in Chat.
Economics.

He was simply seeking some help!
0
reply
Elizabeth II
Badges: 21
Rep:
?
#4
Report 3 years ago
#4
(Original post by FopePrancis)
Economics.

He was simply seeking some help!
Thank you moved
0
reply
Meany Pie
Badges: 5
Rep:
?
#5
Report 3 years ago
#5
Price elasticity :yawn:
0
reply
KkkkKkkk156g
Badges: 0
Rep:
?
#6
Report Thread starter 3 years ago
#6
(Original post by FopePrancis)
Economics.

He was simply seeking some help!
It is micro economics , I have exam tomorrow and I'm not getting this question
0
reply
AnIndianGuy
Badges: 14
Rep:
?
#7
Report 3 years ago
#7
(Original post by KkkkKkkk156g)
an individual spends all his income on two goods X and Y. if the rise in the price of good x, the quantity purchased of good y remains unchanged. what is price elasticity demand for x?
If the quantity purchased of good Y remains unchanged, you can deduce that the quantity purchased of good X has to fall, becuase income is constant. If we're talking about XED, then goods X and Y are unrelated. As for PED, you can't really tell since you can't given me the change in price or change in quantity.
0
reply
The Financier
Badges: 21
Rep:
?
#8
Report 3 years ago
#8
(Original post by KkkkKkkk156g)
an individual spends all his income on two goods X and Y. if the rise in the price of good x, the quantity purchased of good y remains unchanged. what is price elasticity demand for x?
As it is, this question seems poorly phrased. If you're paraphrasing the actual question, could you link a photo or the full wording of the original one?

The insinuation is that you're exploring a link between the price of one good and the demand of another. That is, you're looking at Cross Elasticity of Demand rather than Price Elasticity of Demand (after all, there is no information on the resultant change in demand for good x in order to determine the level of price elasticity). If demand remains unchanged, you're dividing zero by something which will always result in zero. Thus there is simply no cross elasticity and you can conclude that the products exhibit no such relationship.
0
reply
X

Quick Reply

Attached files
Write a reply...
Reply
new posts
Back
to top
Latest
My Feed

See more of what you like on
The Student Room

You can personalise what you see on TSR. Tell us a little about yourself to get started.

Personalise

Have you experienced financial difficulties as a student due to Covid-19?

Yes, I have really struggled financially (53)
17.15%
I have experienced some financial difficulties (88)
28.48%
I haven't experienced any financial difficulties and things have stayed the same (117)
37.86%
I have had better financial opportunities as a result of the pandemic (40)
12.94%
I've had another experience (let us know in the thread!) (11)
3.56%

Watched Threads

View All
Latest
My Feed

See more of what you like on
The Student Room

You can personalise what you see on TSR. Tell us a little about yourself to get started.

Personalise