Calculate the income elasticity oflorena demand for golf

Reference no: EM131019338

Lorena likes to play golf. The number of times per year that she playsdepends on both the price of playing a round of golf as well as Lorena'sincome and the cost of other types of entertainment-in particular, howmuch it costs to go see a movie instead of playing golf. The two demandschedules in the table below show how many rounds of golf per yearLorena will demand at each price under two different scenarios. Inscenario D1, Lorena's income is$50,000 per year and the movies cost $9each. In scenario D2, Lorena's income is $70,000 and the price of moviesrises to $11 each. 3 Quantity demanded PRICE ($)D1D2501510352515a) Using the data under D1 and D2, calculate the cross elasticity ofLorena's demand for golf at all two prices. Are movies and golfsubstitutes, complements or independent goods?

b) Using the data under D1 and D2, calculate the income elasticity ofLorena's demand for golf at all two prices. Is golf an inferior good?

Reference no: EM131019338

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