Income elasticity= dQ/dY *Y/Q
dQ/dY= 0.001
Income elasticity= 0.001*25000/28.75= 0.869
Consider the following demand function for good x -9-0.1p-Py+0.01p2+0.001Y, where Own price, P $30 Quantity demanded...
Consider the following demand function for good 'X': Q = 9 -0.1px - Py + 0.01p2 +0.001Y, where Own price, Px = $120 Quantity demanded = 13.75 Price of a related good, Py = $6 Price of a related good, Pz = $275 Consumer income, Y = $20,000 The income elasticity of demand, s, when equilibrium quantity is 13.75 units and income is $20,000 is equal to : (Enter a numeric response using a real number rounded to three decimal...
Assume a demand equation for good x Q9-0.1p Py001p2 00005Y where p own price of the good Q = quantity demanded py " price of a related good-$3 pz price of a diferent related good - $200 Y-consumer income $4000m。 The quantity demanded as a function of the price can be witten if the price of this good 'x is equal to $33 per unt, what would be the quanty demanded?unts (enter your response rounded to one deoimal pliace)
Assume a demand equation for good'x: where pown price of the good Q-quantity demanded Py price of a related good $3 Pz price of a different related good $200 Y = consumer income = $4,000/mo The quantity demanded as a function of the price can be written:
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...
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...
Qd=680-9Px-6I+4Py where Qd=quantity of good X demanded, Px=price of good X, I=Income, and Py=price of related good Y. From the demand function, it is apparent that good X is: I. a normal good II. an inferior good III. a substitute for good Y IV. a complement with good Y a. II only b. both I and III c. both I and IV d. both II and III e. both II and IV
If the own-price elasticity of demand for a good is -0.6 and quantity demanded decreases by 30%, price must have... O Increased by 20%. decreased by 18% O decreased by 0.6%. Increased by 50%
QD=8000-2P2 +0.4 I-2 PY +SP2 QD = Quantity demanded of good & PX = Price of good x I= consumer of Income (In thousands) PY= Price of good Y P2= Price of good 2 1) what are the you don't need Price intercept intercepts and slope of your demaner curve? to draw the demand curve. Just indicate the and the quantity intercep and slope. 2) If the price of good x is $100, what is quantity demanded 3) suppose price...
The quantity demanded of Good A is determined by the price of Good A, the price of Good B, and the income of the individal. The demand function is: QA = 2292 - 5.5PA + 0.8PB + 0.4I The values of the independent variables are: I = 21692 PA = 332 PB = 62 What is the point price elasticity of demand? ROUND YOUR ANSWER TO EXACTLY TWO DECIMAL PLACES.
A3 Own Price Elasticity Question 1: The demand for Wanderlust Travel Services (good X) is estimated to be Qx = 22000-2.5Px + 4PY-1 M 1 .5Ax. Where Qx is the quantity of good X, Px is the price of good X, Py is the price of good Y, M is consumer income, and Ax is the amount of advertising spent on X. Suppose the price of good X is $450, the price of good Y is $40, the company uses...