Using the following equation for the demand for a good or

Assignment Help Econometrics
Reference no: EM13378409

Using the following equation for the demand for a good or service, calculate the price elasticity of demand,cross price elasticity with good x, and income elasticityt.

Q= 8 - 2p + 0.10I + Px

Where Q is quantity demanded, p is the price, I is income, and Px is the price of a realeted good, Assume that p=$10,I =100, and Px=20.

Reference no: EM13378409

Questions Cloud

The answer to each question should be a short to long : the answer to each question should be a short to long paragraph.1 how does an expansionary monetary policy work?
Supply qs600100pdemand qd1200-200pwhere qs is the supply of : supply qs600100pdemand qd1200-200pwhere qs is the supply of packs of cigarattes and qd is the demand for packs of
1 why are bond markets important2 why are stock markets : 1. why are bond markets important?2. why are stock markets important?3. why are banks important?4. what aspects of the
The figures below indicate the number of mergers that took : the figures below indicate the number of mergers that took place in the savings and loan industry over a 12-year
Using the following equation for the demand for a good or : using the following equation for the demand for a good or service calculate the price elasticity of demandcross price
The marginal product of labor measured in units of output : the marginal product of labor measured in units of output for a certain firm is given by mpn 309 - 2n. n is the
1 a is a group of potential customers with similar needs : 1. a is a group of potential customers with similar needs who are willing to exchange something of value with sellers
The marginal product of labor measured in units of output : the marginal product of labor measured in units of output for a firm ismpn a100 - nwhere a measures productivity and n
In a local market the monthly price of internet access : in a local market the monthly price of internet access service decreases from 30 to 20 and the total quantity of

Reviews

Write a Review

Econometrics Questions & Answers

  What is the sacrifice ratio in the economy

Find the natural rate of uemployment b. Graph the short run Phillips curve if the expected rate of inflation is 3 percent or 0.03 c. What is the sacrifice ratio in this economy d. If the central bank has a loss function of L(pi) = (pi)..

  Why can we be sure that no household will choose electricity

Kristina knows that deadweight loss is something that this small town can do without. She suggests that each household be required to pay a fixed amount just to receive any electricity at all, and then a per-unit charge for electricity.

  What is the profit-maximizing price of carpets

The owners decide to begin spending immediately a rather large sum on advertising designed to decrease elasticity. Should they wait until new firms actually enter. Explain how advertising can be employed to allow Tots-R-Us to keep price.

  Determine how many units of x will zcorp buy

Assume ZCorp has the following short run production function: Q = 500X - 2X2 where X is the only variable input used by ZCorp to product its product, Q. Because ZCorp sells its product in a perfectly competitive market, it can sell all the Q it produ..

  Calculate the equilibrium value of real gdp

The table reports data on real GDP, consumption, investment, government spending, and aggregate expenditures for a closed economy with fixed taxes. Use the information in the table to answer the following questions. Values are in billions of dolla..

  Find what is the marginal revenue function for ajax

Ajax Cleaning Products is a medium-sized firm operating in an industry dominated by one large firm Tile King. Ajax produces a multi-headed tunnel wall scrubber that is similar to a model produced by Tile King. Ajax decides to charge the same price..

  Which are the dependent and the independent variables

Badyear Rubber has developed the following input costs for their truck and bicycle tires. The same rubber is used for both products. Given the constraints they face, how many units of rubber should be used for truck tires and how many should be us..

  What happens to equilibrium y if ig changes to 10

ASSUME THAT THE CONSUMPTION SCHEDULE FOR A PRIVATE OPEN ECONOMY IS SUCH THAT CONSUMPTION C = 50 + 0.8Y. ASSUME FURTHER THAT PLANNED INVESTMENT Ig AND NET EXPROTS Xn ARE INDEPENDENT OF THE LEVEL OF REAL GDP AND CONSTANT AT Ig = 30 AND Xn = 10.

  Firms demand for a resource use the following data to

firms demand for a resource use the following data to answer the question below. assume a perfectly competitive product

  How accurate is the regression equation in predicting sales

A food-products company has recently introduced a new line of fruit pies in six U.S. cities: Atlanta, Baltimore, Chicago, Denver, St. Louis, and Fort Lauderdale. Based on the pie's apparent success, the company is considering a nationwide launch.

  By how much would v have to fall to offset the increase in m

a. What is the real value of output (Q) Now assume that the Fed increases the money supply by 10 percent and velocity remains unchanged. b. If the price level remains constant, by how much will real output increase c. If, instead, real output is fixe..

  What is the interest rate you would pay by financing

laboratory equipment sells for $75,000. The manufacturer offices financing at 8% with annual payments for the 4 years for the $50,000 of the cost. The salesman is willing to cut the price by 10% if you pay cash.

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