Q2 The Department of Statistics Malaysia has reported the results of a study the effect of the price of various types of

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Q2 The Department Of Statistics Malaysia Has Reported The Results Of A Study The Effect Of The Price Of Various Types Of 1 (131.45 KiB) Viewed 39 times

Q2 The Department of Statistics Malaysia has reported the results of a study the effect of the price of various types of mangoes on the rate at which they were purchased. In particular, three types of mangoes were studied: (1) Black Gold Mango, (2) Chok Anan Mango, and (3) Mango Golek. In nine test stores in Kuala Lumpur, Malaysia, the researchers varied the price of each of these types of mangoes for s month. The effect of a 1 percent increase in the price of each type of orange on the rate of purchase of this and each of the other types of mangoes is shown in the following Table Q2 below. For example, a 1 percent increase in the price of Black Gold mangoes (holding other prices constant) seemed to result in a 3.1 percent decrease in the rate of purchase of Black Gold mangoes, a 1.6 percent increase in the rate of purchase of Chok Anan mangoes, and a 0.01 percent increase in the rate of purchase of Mango Golek. Table Q2: Elasticity of 3 Types of Mangoes A 1 percent increase in the price of: Results in the following percentage change in the rate of purchase of: Black Gold Chok Anan Golek Black Gold -3.1 +1.6 +0.01 Chok Anan +1.2 -3.0 +0.1 Golek +0.2 +0.1 -2.8 Determine the price elasticity of demand for each type of mango. (6 marks) (a)