Price elasticity of demand for this linear demand curve
Course:- Operation Management
Reference No.:- EM132281434

Assignment Help
Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
Assignment Help >> Operation Management

Assume the demand for a product is related to its price and to income as follows: Qdx= -145 - 25PX + 0.2Inc

Where [Q = quantity], [Px = Price of our good X], [Inc = income]

Part a: Write out the formula for Price Elasticity of Demand,

Part b: Calculate the price elasticity of demand for this linear demand curve,

Part c: Assuming the income level is $10,000, and price is $5, calculate the new optimal quantity

Part d: Calculate the price elasticity of demand at this point of P=$5, and Income=$10,000.

Put your comment

Ask Question & Get Answers from Experts
Browse some more (Operation Management) Materials
Would you be comfortable being evaluated by your peers? By your subordinates? Why or why not? Which source of evaluations and feedback would you see as most credible? Why? How
As an effort to value diversity at a workplace, employers should tie performance reviews of managers to their measurable support for diversity and inclusion. According to empl
Materials often represent a substantial portion of a company's assets; therefore, they should be controlled from the time orders are placed to the time finished goods are ship
Lonchyna enlisted in the U.S. Air Force while he was still a monor. Three times he applied for and received educational delays that put off the beginning of his tour duty. The
Design a list of 10 data elements related to the patient demographic information (refer back to the data sets if necessary). Indicate characteristics of each example, such as
The probablility of strong growth is 40% and with strong growth, demand is estimated to be 200k for each of three years. Demand with weak growth is estimated to be 150k for ea
Vertical coordination can facilitate stronger customer-seller ties but at the same time may increase the risk to the customer’s and supplier’s specific investments. What are s
If the organization comprises both a backup light bulb also a backup battery with each flashlight, illustrate what is the probability which the flashlight will perform relia