1. (34 points) Consider the demand function for good X: x= (A P3 - MP,Px M...
Assume that the market demand for Good X is given as QB = 3 + 6P31 +0.21 + 4P70.5, where Px = the price of Good X per unit, I = average income per period, and Py = the price of Good Y per unit. Suppose that Px = $2, I = $10, and Py=$4. What is the own-price elasticity of demand (nx) and what is the cross-price elasticity of demand (NXY)? The own-price elasticity of demand = -0.3 and...
please calculate carefully The demand for good (Qx) is given by the following equation: Qx = 20,200 - 12.5 Px + 5 Py-M + 1.5 Ax Suppose the firm spends $3,000 per week on advertising (Ax), Px is $80, Py is $60, and income per capita (M) in the market area is $22,000. (a) Calculate the elasticity of demand for good X with respect to its own price, the price of good Y, and Income per capita. (3) (b) Calculate...
2. The annual market own-price demand function for good X is estimated as X=142-5PX-1 -3.5 Py where X quantity demanded of good X in units/year Px = price of good X in dollars/unit per capita income in dollarsyear Py price of good Y in dollars/unit a) Calculate the market (own-price) demand curve when I = 25 and Py =12 b) Using your results from part a), calculate the quantity of good X demanded in the market when PX-10 c) Calculate...
1 Elasticity This problem continues on from the previous homework. Consider the market for good X. The demand function is and the supply function is Px, Py, and Pz are the prices of goods X, Y, and Z. M is the average consumer income Suppose market research determines that M 105, Py 20, and Pz 10. 1.a Caleulate the cross-price clasticities of demand with respect to good Y and good Z at the market cquilibrium. Are goods Y and Z...
The demand function for good X is as follows: X= 25 + 5Py + 5B -2Px A. What is the slope of this demand curve? B. If Px=10, Py=3, and B= 10 derive the: a. Own demand elasticity at these values b. Cross elasticity at these values c. Income elasticity at these values. C. Is good X elastic or inelastic at these values for income, price of good Y and price of good X? Is good Y a substitute or complementary good? And, is good X an...
Please answer with explanation Suppose a consumer has demand function given by: (P.P.m) = 100 - 2px +3p, + 10m. Suppose that Px = 6,Py = 4, m = 14. The cross-price elasticity of good x is: Find own-price elasticity of good x. 16. Find cross-price elasticity of good X. 1c. is good x a normal or inferior good? Briefly explain in one or two sentences. 1d. Suppose now Pa = 4, y = 6, m = 14. Is good...
only need 2C 2D and 2E please put step by step instructions for only 2C, 2D and 2E. im having difficulty with the math Ir so, briefly explain why and what adjustment should be made. 2. (53 points) Consider this optimization problem. max U 2x + xy x(2 + y) a) (8 points) Write the Lagrangian for this problem and the first order conditions (FOC) b) (16 points) Show that the Marshall demand functions for X and Y are: 2P...
Question 5 1 pts Find the formula for the demand function for a (x as a function of P.) when U(x, y) = 3:0.25.0.75, and M = 20 Impossible to determine without knowing Py • r = 0.25% Question 6 1 pts Imagine you work at Nike estimating the demand for shoes. Your boss tells you that due to new import tariffs, you need to increase the price of your product by 20%. She asks you to calculate what the...
1. Given the above demand curve, how many of good X will consumer purchase when PX is $100 a unit, PY is $50 a unit, and M is $25,000? 2. Your research department estimates that the supply function for televisions is given by: QXS = 5,000 + 5PX -10PR – 2PW When PX is $800, PR is $200, and PW is $2500, how many television sets are produced? 3. Suppose the cross-price elasticity of demand between Coke and...
suppose demand for good X is given by QX = –5PX + 10PY + 1.25I. Suppose PY=$1 and I=$12. What is the equation for the own-price demand curve? What is the slope of the own-price demand curve? Calculate the price elasticity of demand if PX = $2. Interpret your result