hello is there any additional info given?
In a given year (1) the price of the good increases by 4% in foreign country. (2) the dollar depreciates by 5% with respect to competitors currency, (3) consumer income in U.S. increase by 3%, (4) price elasticity of demand for good in U.S. is -1.5 and (5) income elasticity of demand for good in U.S. is 2.
if imported good price was $300 in U.S. at beginning of year approx how would same imported good be in U.S. at years end?
how much would quantity demanded of imported good in U.S. change as a result of price only change?
this is significantly different than your original post.
I will work on this and provide the answer shortly
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Here is your answer as promised: CLICK HERE and then press "download"
Please let me know if you have further questions.
thank you in advance.
I there anyway you can give me a little more information on what figures you use for the equation the last e-mail sent me to your original answer. I am trying understand it, so I can do it on the test next week.
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All calculations and formulas are shown in the file I posted for you. There is no further detail I can provide.
If you have a question about something specific please ask, but there is no additional breakdown I can give, except for that 0.95 is calculated as 1 - 0.05 (0.05=5%)