Monthly demand for the tablet computers is estimated to be as the following linear function: Qxd...
Monthly demand for the tablet computers is estimated to be as the following linear function:
Qxd = 350-2.5Px-3.6Pv + 0.8M + 1.2Ax.
Based on this information answer the following:
a. Suppose that good X (tablet) sells at $600 per unit,
related good Y sells at $125 per unit, average yearly consumer
income is $3,500 and the company utilizes 250 minutes of the
monthly TV advertising. What would be the monthly quantity demanded
for tablet PCs?
b.How would we fully interpret the coefficient next to Ax?
c. What would the own price elasticity of demand coefficient for tablet PCs be equal to? How would we fully interpret this price elasticity of demand coefficient?
d. What would the cross-price elasticity of demand coefficient for tablet PCs be equal to? How would we fully interpret this income elasticity of demand coefficient?
e. What would the income elasticity of demand coefficient for the tablet PCs be equal to? How would we fully interpret this income elasticity of demand coefficient?
Homework Answers
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Monthly demand for the tablet computers is estimated to be as
the following linear function:
Qxd...
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