What is price point elasticity for tacos

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Reference no: EM131091295

Jose's taco emporium completed a study of weekly demand for its tacos in 3 of their establishments. The study showed:

Qx = 56000 - 2000Px + 5000pop + 1000Py *t-stat at .05 R2=.95

         2.39*     3.5*          3.67*            2.6

Where Qx = taco demand

Px = taco price in dollars, POP= population in 4 mile radius (in thousands), Py = price index of competitor tacos in dollars

At this time a typical store had Px=$5, POP= 10000, Py=$4

1. What is the demand curve faced by an average Jose's taco emporium?

2. What is price point elasticity for Jose's tacos?

3. What is cross price elasticity of demand faced by a typical Jose's taco emporium?

Reference no: EM131091295

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