# Question: lorena likes to play golf how many times per year...

###### Question details

Lorena likes to play golf. How many times per year she plays
depends on two things: (1) the price of playing a round of golf,
and (2) Lorena’s income and the cost of other types of
entertainment—in particular, how much it costs to see a movie
instead of playing golf.

The three demand schedules in the table below show how many rounds
of golf per year Lorena will demand at each price under three
different scenarios.

Scenario: |
D_{1} |
D_{2} |
D_{3} |

Income per year: | $50,000 | $50,000 | $70,000 |

Movie Ticket Price: | $9 | $11 | $11 |

Rounds of Golf: |
Quantity Demanded |
Quantity Demanded |
Quantity Demanded |

Price = $55 | 15 | 10 | 15 |

Price = $40 | 25 | 15 | 30 |

Price = $25 | 40 | 20 | 50 |

**a.** Using the data under D_{1} and
D_{2}, calculate the cross elasticity of Lorena’s demand
for golf at all three prices. (To do this, **apply the
midpoints approach** to the cross elasticity of
demand.)

**Instructions: Round your answer to two decimal
places.** **I****f you are entering any
negative numbers be sure to include a negative sign (-) in front of
those numbers.**

Cross elasticity of Lorena’s demand at the price of $55 =

**Instructions: Round your answer to two decimal
places.** **I****f you are entering any
negative numbers be sure to include a negative sign (-) in front of
those numbers.**

Cross elasticity of Lorena’s demand at the price of $40 =

**Instructions: Round your answer to two decimal
places.** **I****f you are entering any
negative numbers be sure to include a negative sign (-) in front of
those numbers.**

Cross elasticity of Lorena’s demand at the price of $25 =

Is the cross elasticity the same at all three prices? (Click to
select)NoYes

Are movies and golf substitute goods, complementary goods, or
independent goods? (Click to select)complementary goodssubstitute
goodsindependent goods

**b.** Using the data under D_{2} and
D_{3}, calculate the income elasticity of Lorena’s demand
for golf at all three prices. (To do this, apply the midpoints
approach to the income elasticity of demand.)

**Instructions: Round your answer to two decimal
places.** **I**

Income elasticity of Lorena’s demand at the price of $55 =

**Instructions: Round your answer to two decimal
places.** **I**

Income elasticity of Lorena’s demand at the price of $40 =

**Instructions: Round your answer to two decimal
places.** **I**

Income elasticity of Lorena’s demand at the price of $25 =

Is the income elasticity the same at all three prices? (Click to
select)NoYes

Is golf an inferior good? (Click to select)NoYes it is (Click to
select)a normal goodan inferior good.