User Account

All Pages

Calculate the own-price elasticity of demand

Assignment Help Business Economics
Reference no: EM132191813

Suppose that the Demand for a product X has been estimated to be: 

Qx = 400 + 0.002I + 8Z - 5Py - 20Px

Where Qx is the quantity demanded for the product X, Px is the price of product X, Py is the price of a related product Y, I is the level of income, and Zis some other variable that affects the demand for product X.

Current values of the variables are: I = 10,000; Z = 150; Py = 50; Px = 50

Calculate the quantity of sales of Qx at the current values of the other variables.

Qx = _____________________________

Calculate the (i) own-price elasticity of demand, (ii) income elasticity of demand, and (iii) cross-price elasticity of demand with product Y at the current values of the variables.

(i) Own-price elasticity

(ii) Income elasticity

(iii) Cross price elasticity

Reference no: EM132191813

Questions Cloud

Providing free tuition to medical students : What are the pros and cons economically of providing free tuition to medical students?
Dollars on the foreign exchange rate : How does and increase in the budget deficit affect the demand and supply of dollars on the foreign exchange rate?
Levied on the buyers of a good : If a $10 per-unit excise tax is levied on the buyers of a good, then after the tax buyers will pay _________ for each unit of the good.
United states than in other countries : Suggest several reasons why health care spending is higher in the United States than in other countries? (Need answer and explanation in relation to healthcare
Calculate the own-price elasticity of demand : Calculate the own-price elasticity of demand for Wipes box-pack in this quarter.
Cost of production subject to output : If a competitive firm minimizes its cost of production subject to output, it then maximizes economic profit. True or false and explain in detail using example
Total variable cost of producing : Refer to the above data. The total variable cost of producing 5 units is:
What factors are important for you in considering this issue : Would you support / vote for this amendment? What factors are important for you in considering this issue?
What can you tell me about global economics : What can you tell me about global economics.. particularly in Russia and in China?

Reviews

Write a Review

Business Economics Questions & Answers

  Find all possible nash equilibria

Two folks found $100 on the street and have to decide how to split it. A game theorist came by and proposed the following resolution. Each player simultaneously declares the amount she wants to keep. If the demands sum up to less than or equal to $10..

  Maintain same equilibrium output in economy

Is it possible to decrease G but to maintain the same equilibrium output in the economy before the spending cuts? If so, how?

  Explain how do you run an oligopoly to make the largest

Explain how do you run an oligopoly to make the largest possible profit. The oligopolistic producer of this vehicle failed to heed market signals. It failed. Can you name the company.

  Determine the price elasticity of demand

The ECON3305 company was considering a price increase and wished to determine the price elasticity of demand (arc elasticity of demand). An economist and a market researcher, Sandy and you, were hired to study demand. In a controlled experiment, it w..

  Show the total and marginal products

Show the total and marginal products and indicate at each level of production whether the production function exhibits increasing, constant, or diminishing marginal productivity.

  How do we measure progress

How do we measure progress? What tools and methods would you follow to measure the progress of the firm you currently work for?

  Decision to pursue joint ventures-mergers-other alliances

Technology is often the reason behind the decision to pursue joint ventures, mergers and other alliances. When technologies are expensive and take a long time to develop internally, organizations may attempt to gain access to the capabilities of anot..

  Present value of a perpetuity

A perpetuity pays $170 per year and interest rates are 6.7 percent. How much would its value change if interest rates increased to 9.2 percent?

  Qa firm that sells e-books books in digital form

q.a firm that sells e-books books in digital form downloadable from the internet sells all e-books relating to

  An investment has beta-what is the required return

An investment has a beta of 1.0. The risk free rate is 2% and current market return is 8%? What is the required return?

  Fixed-rate mortgage is available with an interest rate

You are considering buying a new house, and have found that a $200,000, 30-year fixed-rate mortgage is available with an interest rate of 6 percent. This mortgage requires 360 monthly payments of approximately $1,179 each. If the interest rate rises ..

  According to the law of supply and demand

According to the law of supply and demand

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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