Required to maintain quantity demanded for chicken biscuits

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Reference no: EM13979122

The demand curve for chicken biscuits is estimated to be: Ln (Q xd) = 100 - .75 ln (Px) - 4 ln (Py) + 1.5 ln (M)

Where x represents chicken biscuits, y represents chocolate milk and M represents income.

a. If income drops by 2%, holding constant the price of chocolate milk, what percentage change in the price of chicken biscuits is required to maintain the same quantity demanded for chicken biscuits?

b. If the price of chocolate milk increases by 4%, holding constant income, what percentage change in the price of chicken biscuits is required to maintain the same quantity demanded for chicken biscuits?

Reference no: EM13979122

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