You Have Hired a Student Intern to Calculate Some Elasticity

question 231

Essay

You have hired a student intern to calculate some elasticity measures so that you can present the findings at a prestigious economics conference.For the measures that follow, provide a quick interpretation, and then determine whether you should trust the intern's work or not.After all, it will be you in front of that critical audience of professionals, not the intern.a) "The income elasticity of demand for movie theatre tickets is -1.5."
b) "The price elasticity of demand for milk is 0.4 in the short run and 0.9 in the long run."
c) "The cross-price elasticity of demand for Cheerios cereal with respect to the price of Wheaties cereal is -2."

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