Elucidate the elasticity of demand

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Information about "Elasticity of demand"

The demand for eggs is estimated by
x=10000+.00002I - 2000px
where px is the price of eggs
i is the mean income of the area in thousands

Initially, i =50,000 and px =3.00

What is the elasticity of demand given the price and income combination?

Suppose the price goes up to $4, using consumers surplus, estimate the welfare loss to consumers when the price goes from 3 to 4 with income fixed at 50,000

A demand function is x=100px ^-.5 I ^1/3 ..from this demand function, what is the elasticity of demand?


Reference no: EM1328916

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