What is the price elasticity-income elasticity of demand

Assignment Help Business Economics
Reference no: EM131118717

First Problem The demand for kitty litter, in pounds, is: ln (D(p)) = 1, 000 − p + ln(m) where p is the price of kitty litter and m is income. 1. What is the price elasticity of demand for kitty litter when p = 2 and m = 500? When p = 3 and m = 500? When p = 4 and m = 1, 500? 2. What is the income elasticity of demand for kitty litter when p = 2 and m = 500? When p = 2 and m = 1, 000? When p = 3 and m = 1, 500? 3. What is the price elasticity of demand when price is p and income is m? The income elasticity of demand?

Reference no: EM131118717

Questions Cloud

Corporate social media policy : Visit www.thecoca-colacompany.com/socialmedia/ where you'll find Coca-Cola's social media policy, or find the policy for another company.  Identify the key components WOMMA recommends be included in a corporate social media policy.
A formal report that effectively presents the problem : 1. To develop a formal report that effectively presents the problem situation/opportunity, research findings, and conclusions of your investigation to your target audience.
List the names of all nutrients that remained below rda : List the names of all nutrients that remained below 80 percent RDA after correcting and changing the menu. Indicate the long-term effects of inadequate intake over time for each listed (in PowerPoint, this may require two slides).
The retail price for wrinkle-reducing injection : The retail price for a wrinkle-reducing injection is $550. Retailers buy directly from the manufacturer, who has a margin of 80 percent on their product. If the retailer margin is 40 percent, what is the manufacturer selling price to the retailer? Wh..
What is the price elasticity-income elasticity of demand : First Problem The demand for kitty litter, in pounds, is: ln (D(p)) = 1, 000 − p + ln(m) where p is the price of kitty litter and m is income. 1. What is the price elasticity of demand for kitty litter when p = 2 and m = 500? When p = 3 and m = 500? ..
What does it mean to violate personal privacy : Baseball scouting-the job of hiring excellent future players and screening out mediocre ones-is very competitive. Those who do it well are paid well; those who don't are cycled out quickly to make room for someone else. You have the job, you have ..
New sports drink called polysport : Assume that you work for a sports marketing agency. Your client, a new sports drink called PolySport, wants to use sports marketing to reach its target consumer group of casual athletes and sports spectators of all types.
Depends on price and amount of scandal reported : Third Problem In Gomorrah, New Jersey, there is only one newspaper, the Daily Calumny. The demand for the paper depends on the price and the amount of scandal reported. If the Daily Calumny charges its profit-maximizing price, and prints the profit-m..

Reviews

Write a Review

Business Economics Questions & Answers

  Full employment-increase GDP

Country X has an $8000 billion GDP and a population of 200 million. Country Y has a $6000 billion GDP and a population of 150 million. Which of the following is true? If the GDP deflator is now 125, we may conclude that since the base year prices hav..

  What are the practical policies that emerge out of outlook

George Kennan’s Long Telegram/Mr. X article. What is the post-war Soviet outlook? What are the sources of this outlook? What are the practical policies that emerge out of this outlook? What should the US do in light of Soviet policy/outlook?

  Traditional staff model hmo managed care plan

Please discuss the differences between a traditional staff model HMO managed care plan and a PPO managed care plan. Also explain the differences between a POS managed care plan and an IPA managed care plan.

  The marginal revenue product of labor for electronics firm

The marginal revenue product of labor for an electronics firm is MRPL = 50 - L, where L = the number of workers. If the wage of electronics workers is $20 per worker, then how many workers will the firm hire?

  Describing individuals socioeconomic status

America is stratified into levels describing individuals’ socioeconomic status: upper class, middle class, working class, and the poor. Describe characteristics of each class and, when appropriate, the sub-classes.

  Consider two-period economy with a single commodity

Consider a two-period economy with a single commodity (say leisure): X_1 is the consumption of leisure in period 1, and X_2 is the consumption of leisure in period 2. When Peter evaluates consumption streams, he cares only about the best time in his ..

  Equal pay for work of equal value

“Equal pay for work of equal value” is a commonly held goal, but “equal value” is hard to define. What would be the consequences of legislation that enforces equal pay for what turns out to be work of unequal value?

  Temporary increase and decrease in technology

Explain how it can be analytically sensible to have a temporary increase/decrease in technology. Explain under which conditions/assumptions this would be very difficult to assert.

  When confronted with a natural monopoly

When confronted with a natural monopoly that restricts output and charges monopoly prices, the two methods that government have for promoting better outcome are:

  Preventing child labor and saving domestic jobs

After a pair of wars in the late seventeenth and early eighteenth centuries, French-British relations decayed to the point that England began putting high tariffs on French wines. A large part of the support for this law came from British brewers and..

  Consumer surplus decreases

Other things held constant, consumer surplus decreases as:

  Explain how should firm produce in order to maximize profit

Explain how much should firm produce in order to maximize profit. Illustrate what is maximum profit that firm can generate at output level (your answer in a).

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