What is the relation between these two goods

Assignment Help Microeconomics
Reference no: EM13877342

Suppose the market demand function is Qd = 5I + 10P1 - 0.4P2 , where I is income in $1,000 and P1 is price of a related good.

(a) What is the relation between these two goods?

(b) Calculate the income, cross price, and own price elasticity of demand if I = $50,000, P1 = $10 and P = $20.

(c) At what price is demand unit elastic if I = $50,000 and P1 = $10?

Reference no: EM13877342

Questions Cloud

Calculate own price elasticity and cross price elasticity : Suppose the market supply function is Qs = 1.2P2 - 0.5PE - 10PL, where PE and PL are price of energy and labor, respectively. Calculate the own price elasticity and cross price elasticity of energy and labor if P = 20, PE = 70, and PL = 40.
Calculate the probability that it came from an advert : A financial company places adverts in three publications with probabilities of 0.2, 0.3 and 0.5 res. The probability that the company gets an enquiry from an advert in the first publication is .001
Robin harrington established time definite delivery : For each of the transactions, prepare journal entries. Be sure to categorize each account as an asset (A), liability (L), stockholders' equity (SE), revenue (R), or expense (E).
What did you know about elder abuse : What did you know about elder abuse prior to this DB exercise? What stuck out the most to you in both the website and the video? What do you think can be done to prevent elder abuse? What about reporting
What is the relation between these two goods : Suppose the market demand function is Qd = 5I + 10P1 - 0.4P2 , where I is income in $1,000 and P1 is price of a related good- What is the relation between these two goods?
Find the probability that the die shows an odd number : A die is rolled and a coin is tossed, find the probability that the die shows an odd number and coin shows a head.
Chemical formula for nonstoichiometric material : Under these conditions, name one crystalline defect that you would expect to form in order to maintain charge neutrality. How many Cu+ ions are required for the creation of each defect? How would you express the chemical formula for this nonstoichiom..
What price is demand unit elastic : Determine the price elasticity of demand at prices $5, $6, and $8 for Qd = 600 - 2P2 , At what price is demand unit elastic?
How has that discovery changed people view of the universe : When was dark energy discovered? How has that discovery changed people's view of the universe? What is a theory of everything? What does it aim to do to people's understanding of the universe as a whole

Reviews

Write a Review

 

Microeconomics Questions & Answers

  The gains from specialization and trade are based on

the gains from specialization and trade are based on comparative advantage which reflects the relative opportunity

  Question about supply and demand curves

In 2005, hogs in the US were selling for $67 each, down from $75 a year ago. This was primarily due to fact that supply had raise during the period to 1.8 million hogs per week.

  Economic theory predicts that the cost of general training

As a result of the scale effect associated with a higher wage, the quantity of labor demanded is expected to,  Unions may attempt to increase the demand for union workers by, Economic theory predicts that the cost of general training will be,

  Market for tires in terms of equilibrium quantity and price

Presume that the price of rubber, an input in production of tires, goes up. How will this affect the market for tires in terms of equilibrium quantity and price?

  Is this reasonable from an economic stand point

Based on their public statements, many policy makers would support government regulation of oil markets in order to compensate for the exhaustibility of oil as a resource. Is this reasonable from an economic stand point.

  Short run production function

You manage the plant the mass produces engines by teams of workers using assembly machines. The technology is summarized by production: Find out the short run production function? Find out the total cost function for your plant to produce q engines ..

  Find the pareto optimal allocations

Find the Pareto optimal allocations - Find the best allocation according to the utilitarian criterion and Find the quantity of each good traded, and ?nd each person's actual consumption of ale and bread.

  Explain how long-term contracts contribute to sticky prices

Even though this chapter is all about the classical explanation of business cycles, this innovation in economic theory is thanks to the ideas of John Maynard Keynes. That's why we call it a "Keynesian" supply curve

  Calculate the appropriate value to use for income

Calculate the appropriate value to use for income in your analysis. Explain why you choose to use that level of income and what is the dead weight loss associated with monopoly

  Explain what is offshoring of white-collar service jobs

What is offshoring of white-collar service jobs, and how does it relate to international trade Why has it recently increased Why do you think more than half of all of the offshored jobs have gone to India

  1bank z 10 rr assetsliabilities rr k200000deposits

1. bank z 10 rr assetsliabilities rr k200000deposits k2000000 er k1800000 you are given the above balance sheet for

  In class we covered the concepts of producers and consumers

in class we covered the concepts of producers and consumers surplus.a. with respect to different government policies

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd