6 Compare total spending at points G and H on D2 in Panel (b) Is your result consistent with your finding about the price elasticity of demand between those two points? Suppose Janice buys the following amounts of various food items depending on her weekly income: Weekly Income Hamburgers Pizza Ice Cream Sundaes $500 3 $750 2 Compute Janice’s income elasticity of demand for hamburgers Compute Janice’s income elasticity of demand for pizza Compute Janice’s income elasticity of demand for ice cream sundaes Classify each good as normal or inferior Suppose the following table describes Jocelyn’s weekly snack purchases, which vary depending on the price of a bag of chips: Price of bag of chips Bags of chips Containers of salsa Bags of pretzels Cans of soda $1.00 $1.50 2 Compute the cross price elasticity of salsa with respect to the price of a bag of chips Compute the cross price elasticity of pretzels with respect to the price of a bag of chips Attributed to Libby Rittenberg and Timothy Tregarthen Saylor URL: http://www.saylor.org/books/ Saylor.org 287