1. Given the demand function Q=500-3P 2P +0.01Y where and P denote quantity and price of the good, is income, and price of an alternative good. P. is the a) If P=20, P₁30, and Y= 5000, find (i) the price elasticity of demand (ii) the cross-price elasticity of demand (iii) the income elasticity of demand b) If income rises by 5%, calculate the corresponding percentage change in deman Is the good inferior or superior?

1. Given the demand function Q=500-3P 2P +0.01Y where and P denote quantity and price of the good, is income, and price of an alternative good. P. is the a) If P=20, P₁30, and Y= 5000, find (i) the price elasticity of demand (ii) the cross-price elasticity of demand (iii) the income elasticity of demand b) If income rises by 5%, calculate the corresponding percentage change in deman Is the good inferior or superior?

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter5: Elastic And Its Application

Section: Chapter Questions

Problem 7PA: Suppose that your demand schedule for pizza is as follows: a. Use the midpoint method to calculate...

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