2. Suppose Qd=10,000 -2 Px + 3 Px-4.5M, = where Px $100, P = $50, and M (income) = $2,000. (a) What is the own price elasticity of demand? Please show your calculations. (b) What is the cross price elasticity between good X and good Y? Please show your calculations. (c) What is the income elasticity of demand? Please show your calculations. Hint: For this question please look at the section "Obtaining Elasticities from Demand Functions" in Chapter 3 on pages 89-90 of the textbook
2. Suppose Qd=10,000 -2 Px + 3 Px-4.5M, = where Px $100, P = $50, and M (income) = $2,000. (a) What is the own price elasticity of demand? Please show your calculations. (b) What is the cross price elasticity between good X and good Y? Please show your calculations. (c) What is the income elasticity of demand? Please show your calculations. Hint: For this question please look at the section "Obtaining Elasticities from Demand Functions" in Chapter 3 on pages 89-90 of the textbook
Chapter6: Elasticities
Section: Chapter Questions
Problem 8P: If the elasticity of demand for hamburgers equals 21.5 and the quantity demanded equals 40,000,...
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