Calculate the price elasticity

Reference no: EM13692696

The demand for good X has been estimated by Qxd = 6-2PX+5Py. Suppose that the good X sells at $3 per unit and good Y sells for $2 per unit. Calculate the price elasticity.

Reference no: EM13692696

Questions Cloud

Constant allocation and re-allocation of resources : There is a constant allocation and re-allocation of resources. How does this happen? What economic mechanism helps allocate resources to the preferences of hundreds of millions of people? (Hint: Consumer's sovereignty).

Assume an economy without any technological progress : Assume an economy without any technological progress. using a Solow model with an alpha parameter of 0.5 determine the steady state amount of capital stock (K*), total output (Y*) and consumption (C*) when savings is 20%, population grows at a rate o..

Required safety inspection procedure on its production lines : A manufacturing rm spends $500,000 annually for a required safety inspection procedure on its production lines. A new monitoring technology would enable the company to eliminate the need for such inspection.

Based on the concept of denominator management : Based on the concept of “denominator management” by famed strategists C.K. Prahalad and Gary Hamel list five ways firms can increase short term return by increasing the ‘‘R’’ portion of ROI. Which of these may be harmful to a firm’s long-term strateg..

Calculate the price elasticity : The demand for good X has been estimated by Qxd = 6-2PX+5Py. Suppose that the good X sells at $3 per unit and good Y sells for $2 per unit. Calculate the price elasticity.

Definition of a central bank transparency : Start your discussion with the definition of "a central bank transparency" - what is it and then proceed to the discussion of advantages and disadvantages of a central bank transparency.

Private practice needs a van to carry crew and equipment : A construction manager just starting in private practice needs a van to carry crew and equipment. She can lease a used van for $2,654 per year, paid at the beginning of each year, in which case maintenance is provide. Alternatively, she can buy a use..

Interest rates-consumer confidence on demand for money : A study has estimated the effect in interest rates and consumer confidence on the demand for money to be: ln M = 14.666 + .021 ln C - 0.036 ln r, where M denotes real money balances, C is an index of consumer confidence, and r is the interest rate pa..

Explain the environmental kuznets curve : Explain the environmental Kuznets curve. What does it show? How is it constructed? Is it really useful in predicting the path of environmental d degradation and recovery an hypothetical country is on?

User Account

All Pages