Price elasticity of demand for this linear demand curve

Assignment Help Operation Management

Reference no: EM132281434

Assume the demand for a product is related to its price and to income as follows: Qdx= -145 - 25PX + 0.2Inc

Where [Q = quantity], [Px = Price of our good X], [Inc = income]

Part a: Write out the formula for Price Elasticity of Demand,

Part b: Calculate the price elasticity of demand for this linear demand curve,

Part c: Assuming the income level is $10,000, and price is $5, calculate the new optimal quantity

Part d: Calculate the price elasticity of demand at this point of P=$5, and Income=$10,000.

Reference no: EM132281434

Questions Cloud

Describe the aesthetic qualities of the artwork : Describe the aesthetic qualities of this artwork as to why it is pleasing to you. (What makes this work special? How does it make you feel?)

Discuss a modern personality whose life more fits pattern : Discuss a modern personality whose life more or less fits the pattern of the rise and fall of the hero, as described in the chapter.

Writing function that creates a string of path to directory : Write a function that creates a string of the path to a directory. Use makeEmptyPicture to create a blank picture in the correct size, then scale down.

Write brief description of operations : Faculty members may use the vehicles owned by Tiny College for officially sanctioned travel. For example, the vehicles may be used by faculty members to travel.

Price elasticity of demand for this linear demand curve : Calculate the price elasticity of demand for this linear demand curve, calculate the new optimal quantity.

Toy of the century : The LEGO company’s Lego brick has been awarded “Toy of the Century”, What factors may have influenced the Lego Group's target marketing decisions?

Explain what you mean by the claim or statement : Does Michelangelo's sculpture, PIETA, demonstrate more Hellenic or Hellenistic qualities? Or, does it contain qualities from both sculpture periods?

Write comment on the supervision : Just read below and write your own comment on Supervision is a dynamic, evolutionary process that is based on trust

Healthcare quality management and outcome assessment : Incorporating the scriptures on "How Healthcare Quality Management and Outcome Assessment should be understood differently at a non-secular institution

User Account

All Pages