Price elasticity of demand and income elasticity of demand

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Reference no: EM13897061

The demand function for bicycles in Holland has been estimated to be

Q = 2,000 +15Y - 5.5P

Where Y is income in thousands of euros, Q is the quantity demanded in units, and P is the price per unit. When P = 150 euros & Y = 15(000) euros, determine the following:

a. Price elasticity of demand

b. Income Elasticity of demand

Reference no: EM13897061

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