Income-elasticity of demand coefficient

Assignment Help Microeconomics
Reference no: EM1367380

a) Use the arc-approximation formula to calculate the price-elasticity of demand coefficient of a firm's product demand between the (quantity,price) points of (50, $10) and (54, $8).

b) Calculate the cross-price elasticity of demand coefficient of a firm's product X, given that a 10% increase in the price of its close substitute, product Y, causes the quantity demand of
product X to increase by 15%.

c) Calculate the income-elasticity of demand coefficient for a product for which a 5% increase in consumers' income will increase the quantity demanded by 4%.

Reference no: EM1367380

Previous Q& A

  Why wouldcost of suvs lower than equilibrium cost

Why would equilibrium cost of SUVs such as Ford Explorers and Chevy Trailblazers be lower than equilibrium cost of subcompacts.

  Determine the value of the computer in the gdp

The given table lists the stages needed in the production of a personal computer. Determine the value of the computer in the GDP?

  What is the potential difference that stopped electron

A spherical shell 28 in diameter carries a total charge of 81 distributed uniformly over its surface. A 4 point charge is located at the center of the shell. What is the electric field strength 8 from the center.

  Barriers or challenges to research utilization

Describe some of the barriers or challenges to research utilization that exists in your work setting or practice.

  Shifts in demand curve

What are some of the ways these curves shift and what is the corresponding change to the point of equilibrium?

  Advantages using a research-based approach

Describe some of the advantages for using a research-based approach to problem resolution in your organization or practice.

  Write class using static variable to store annual interest

Write class SavingsAccount. Use static variable annualInterestRate to store annual interest rate for all account holders. Each object of class contains private instance variable savingsBalance,

  Estimate t-statistics for each variable

Estimate t-statistics for each variable and elucidate Illustrate what inferences can be drawn from m. If R2 of this equation is 0.25, illustrate what inference can be drawn from it.

  What is an average velocity of the train throughout this run

A bucket filled with water exerting a force of 529N is hanging from a rope that is wound around a 0.05 m radius stationary cylinder. If cylinder does not rotate and the bucket hangs straight down, what is the magnitude of torque the bucket produce..

  Finding equilibrium fare

The marginal and average cost curves of taxis in metropolis are constant at $.20/mile. The demand curve for taxi trips in metropolis is given by P = 1 - .00001q, where P is the fare, in dollars per mile, and Q is measured in miles per year.

Reviews

Write a Review

 

Similar Q& A

  Long-run market adjustment-perfect competition

Firm Z, operating in a perfectly competitive market, can sell as much or as little as it wants of a good at a price of $16 per unit. Its cost function is C=50+4Q+2Q^2. The associated marginal cost is MC=4+4Q, and the point of minimum average cost ..

  Demand-quantity demanded-supply

Explain what happens to price and quantity of milk when the following events take place: For each and every event, specify how it effects either demand, quantity demanded, supply, or quantity demanded. It is also important to demonstrate how the ch..

  Assignment on supply, demand & taxes

Assignment on Supply, Demand & Taxes,    Supply, Demand, and Taxes,  The market for tennis shoes exhibits the following supply and demand schedules:

  Determining average sales and equilibrium

Ajax, Inc. has appointed you to examine the demand for its line of telecommunications devices in 35 different market areas.

  Estimating consumer surplus

The demand curve for the product X is given by Qdx = 460 - 4Px. How much consumer surplus do consumers receive when Px = $35?

  Sensitivity of demand for ipods

Determine how the following situations will affect the demand curve for ipods.

  Determining determinants of demand

Suppose your product is Wendy's hamburgers. First "draw" the demand and suppy curve and see how the equilibrium price and quantity is determeined.

  Determining pricing problem

Assume a manager of a profitable department store you're confronted with the pricing problem. You've two types of customers

  Supply-demand-equilibrium quantity and price

Find out the quantity demanded, the quantity supplied, and the magnitude of the shortage if a price ceiling of $30 is imposed in this market. Also determine the full economic price paid by consumers.

  What impact would this have on the kitty litter market

What impact would this have on the Kitty Litter market and the individual Kitty Litter producer in the SR? In the LR? Carefully Explain.

  Examining facts-reversed causality

A hypothetical study examines the operations of a couple of hundreds medical clinics, with the data for amount of expenses for new medical equipment relative to total expenses in particular year(s), and the amount of revenue per physician in subse..

  Write an assembly language subroutine

Write an assembly language subroutine

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