1 Suppose Dp is the demand curve for plantain, and it is givenas;Dp = 5000 – 3P, + 5Py – Pc + 0.1Y1 where P, is price of plantain, Py is price of yam, Pc is price ofcassava, Y is income of the consumer.1 Given P, = 200, P, = 300, P. = 500 and Y = 5000 calculate1 Price elasticity of demand2 Cross-Price elasticity of demand3 Income elasticity of demand1 From your estimations, what inferences can be drawn aboutthe nature of plantain to the consumer.

Plugging given values, Dp = 5000 - 3 x 200 + 5 x 300 - 500 + 0.1 x 5000 = 5000 - 600 + 1500 - 500 +…

1 Suppose D, is the demand curve for plantain, and it is given as; Dp = 5000 – 3P, + 5Py – Pc + 0.1Y 1 where P, is price of plantain, Py is price of yam, Pc is price of cassava, Y is income of the consumer. 1 Given P, = 200, Py = 300, Pc = 500 and Y = 5000 calculate %3D 1 Price elasticity of demand 2 Cross-Price elasticity of demand 3 Income elasticity of demand

1 Suppose D, is the demand curve for plantain, and it is given as; Dp = 5000 – 3P, + 5Py – Pc + 0.1Y 1 where P, is price of plantain, Py is price of yam, Pc is price of cassava, Y is income of the consumer. 1 Given P, = 200, Py = 300, Pc = 500 and Y = 5000 calculate %3D 1 Price elasticity of demand 2 Cross-Price elasticity of demand 3 Income elasticity of demand

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter5: Elasticity

Section: Chapter Questions

Problem 28CTQ: Would you expect supply to play a more significant role in determining the price of a basic...

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