Answer to Question #28598 in Microeconomics for ivy gomez

Question #28598
the elasticity of demand facing the shrimp sector is: price elasticity of demand (PED).............................................-3.1 income elasticity of demand (YED)..........................................2.1 cross elasticity of demand (XED)............................................2.0 XED (% change in the demand for a good A)/ (% change in the price of good B) PED (%change in demand)/(% change in price) YED (% change in demand)/(% change in income) the elasticity of lobster sector is: price elasticity of demand (PED)....................-2.5 income elasticity of demand (YED).................2.1 cross- elasticity of demand (XED)...................3.7 1. which sector would lose the most from increase and why?( hint: use price elasticity of demand) 2.from the information given,decide whether shrimp is a normal or inferior good(for normal goods, demand falls when price rises. for inferior goods, demand falls when income increase)( hint: use in come elasticity of demand.
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