Compute the cross elasticity of demand

Assignment Help Macroeconomics
Reference no: EM1327347

Calculating own price and cross price elasticity values

The demand function for kingston's product is given by
logQ = 2.01 -0.148LogP + 0.25Log Z

Q = the quantity demanded (in tons) of its product, P = the price ( in dollars per ton), and Z = the price(in dollars of a rival product

a. Calculate the price elastic of demand

b. Calculate the cross elasticity of demand between kingston's product and the rival product.

 

Reference no: EM1327347

Questions Cloud

Illustrate what is output elasticity in this case : Illustrate what is output elasticity in this case. What sort of returns to scale does the firm face.
Firms earnings per share : Being company's stock has PE ratio of 17.12 and pays $1.94 in dividends per share. What is firm's earnings per share (EPS)?
Effectiveness of the public relations campaign : Public Relations Campaign' and Technology - What are the technology considerations, and the strategies to determine the effectiveness of the "Public Relations Campaign"?
The benefits of improved disclosure : Do the benefits of improved disclosure justify the additional disclosure costs? Who gains the most benefit from these disclosures?
Compute the cross elasticity of demand : Compute the cross elasticity of demand among kingston's product and the rival product.
Time value of money techniques : Based solely on time value of money techniques (rationale), do you think it is logical for people to over pay their taxes during the year and get a refund?
What aspects of information technology interests you : Network administrator - What aspects of Information Technology interests you and what career aspirations you have in the field?
Suppose firm y production function is given : Suppose Firm Y's production function is given by the following Cobb Douglas equation
Explain strategic management- most important problem facing : Explain Strategic Management- Most Important Problem Facing Amazon and How do you balance between your commitment to shareholders and your commitment to the community

Reviews

Write a Review

Macroeconomics Questions & Answers

  Analyzing factor endowment of country

Assuming that there are only two goods, and the other good (food) is capital intensive, show the equilibrium points of production and consumption in ALFA, before and after trade.

  Statement of cost of production

Assume you own a home re-modelling company. You are currently earning short-run profits. The home re-modelling industry is an increasing-cost industry.

  Impact of fiscal stimulus on aggregate demand

Discuss the feasibility of lower middle or low income countries resorting to fiscal stimulus to stave off recessions in their own economies. You can use one or more countries as examples.

  Developing countries and impact on wage

Suppose that rich countries surprisingly commit to much higher official aid, to be maintained for several decades. What would be the effect of such aid on?

  Demand and supply curves before and after tax

Draw a graph describing the demand and supply curves before and after the tax. describe graphically the tax revenue and how it is shared between the consumers and suppliers (producers) of gasoline.

  Optimal price level-marginal cost

Compute the point price elasticity of demand for bearing grease. Compute the optional price for bearing grease if marginal cost is $4.50 per unit.

  Competitor cut their price also the industry sales declined

A major competitor cut their price also the industry sales declined to 8000 shoes per month, If the company wishes to restore

  Obtaining higher average payoff

Assume the 3 firms compete for market share over an infinite time horizon.  Each firm takes the present value of 1 dollar tomorrow to be X dollars today, where 0

  In the short-run machinery is fixed also labor is variable

In the short-run, machinery is fixed also labor is variable for a business that uses only these two inputs. If, at the current level of output, marginal product of labor is declining

  The president of a small industry has been complaining

The president of a small industry has been complaining to his controller about rising labor and material costs.

  Expenditure on education from macro perspective

How might there be increase in total spending on a child's education in response to providing a fixed level of education?

  Different german also japanese policies may facilitate

Would your answer change if you thought different German also Japanese policies may facilitate different US 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