The demand for haddock (fish) has been estimated to be
Log Q = .769 – 2.174Log P + 0.461Log I +1.909LogPm
Where Q = quantity fish demanded
P = price of fish
I = income of consumes
Pm an index of prices of meat and poultry
Log is another way of writing natural log
1)What is the numerical value of the price elasticity of demand? Is fish demand elastic or inelastic?
2)What is the numerical value of the income elasticity of demand? Is fish an inferior or superior good?
3)What is the numerical value of the cross price elasticity of demand? In this case are meat and poultry a substitute or a complement to fish?
4)Suppose income of consumers is expected to increase 5% next year. Assuming all other factors stay the same, forecast the percentage change in the quantity of fish demanded next year.
The demand for haddock (fish) has been estimated to be Log Q = .769 – 2.174Log...
The demand for haddock has been estimated as log Q ¼ a þ b log P þ c log I þ d log Pm where Q ¼ quantity of haddock sold in New England P ¼ price per pound of haddock I ¼ a measure of personal income in the New England region Pm ¼ an index of the price of meat and poultry If b ¼ 2.174, c ¼ 0.461, and d ¼ 1.909, a. Determine the price elasticity of...
Suppose the following is an estimated log-linear demand function: ln Q = 8.99 – 3.78 ln P – 1.77 ln M – 2.03 ln PR All parameter estimates are significant. 1) Is this good a normal or an inferior good? 2) Is this good a complement of or substitute for the related good? 3) What is the price elasticity of demand for this good? 4) What is the income elasticity of demand for this good?
8. The income elasticity of demand is a measure of the responsiveness of the 0 A. quantity of a good demanded to changes in income. O B. quantity of a good demanded to changes in another good's price. C. 0 D. quantity of a good demanded to changes in its price. consumer's income to a change in the price of the goods he or she consumes. 9, Bus rides and canned soup are inferior goods, so the elasticity of demand...
4. Given the demand function Q=98.6-2.3P+3.1P,-2.1Y where Q, is the quantity demanded, Px is the price of the good itself in dollars, P is the price of a related good in dollars, and Y is average income (measured in thousands). If P $23, Ps $29, Y = $36, compute the value for Q C 1 point Using the information in part a, compute the cross-price elasticity (Eo) and determine if Py is describing a substitute or complement (round to 2...
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can anyone help me solve this question? thank you Calculating Elasticities Show your work for full points. Given Qd = 100-5(Pq) + 1 (PZ) + 0.5 (inc) Where Qd-quantity of Q demanded Pq price of Q Pz- price of another (cross) good Z and nc income levels. Using Calculus, calculate the own price elasticity of demand and determine if the demand for Q is elastic or inelastic if Qd-80 and Pq-20. (3 points) Using Calculus, calculate the cross price elasticity...
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Consider the following pairs of items: a. shampoo and conditioner b. iPhones and earbuds c. a laptop computer and a desktop computer d. beef and chicken e. air-travel and weed killer Which of the pairs listed will have a negative cross-price elasti a and b only a, b, and c only cand d only O e only A5 percent increase in income leads to a 5 percent decrease in quantity demanded for a product. This product is a(n) product and...
Consider the following demand equation for good a. Good a demands is a function of income (Y) and prices of good b and c. QDa(p,Y,pb,pc) = 12 − 3pa + 5Y −3pb +4pc. Pa = 2 Y=500 Pb = 3 Pc = 5 a. Calculate elasticity of demand. Does it respect law of demand? is it elastic or inelastic? Why? b. Calculate elasticity of income. Is it inferior or nomal good? Why? c. Calculate cross-price elasticities with good b. Is...