5. Consider the following demand function for airline tickets (quantities are in thousands): Q = 10-0.1px + 0.4p, +0.25p, +0.005Y, where P, price of an airline ticket = quantity demanded substitute O complementary unrelated Py P₂ Y . price of a bus ticket price of gasoline consumer income According to the above equation, airline tickets and bus tickets are (1). goods. If, in equilibrium, the cross-price elasticity between airline tickets and gasoline is 1.9; when the price of the gasoline increases by 1%, the quantity demanded of airline tickets increases by % (enter your response rounded to two decimal places).

5. Consider the following demand function for airline tickets (quantities are in thousands): Q = 10-0.1px + 0.4p, +0.25p, +0.005Y, where P, price of an airline ticket = quantity demanded substitute O complementary unrelated Py P₂ Y . price of a bus ticket price of gasoline consumer income According to the above equation, airline tickets and bus tickets are (1). goods. If, in equilibrium, the cross-price elasticity between airline tickets and gasoline is 1.9; when the price of the gasoline increases by 1%, the quantity demanded of airline tickets increases by % (enter your response rounded to two decimal places).

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Concept explainers

Form Utility

The term utility in general refers to the satisfaction earned from usage of a particular product or service. Utility always plays an important role because it influences various important elements like demand & thereby the price of the good or service as well. Though utility is not easy to measure, various types of economic models can be used indirectly. There can be various types of utilities like economic utility, marginal utility, cardinal utility, form utility.

Question

5. Consider the following demand function for airline tickets (quantities are in thousands):
Q = 10-0.1px + 0.4p, +0.25p, +0.005Y, where
P, price of an airline ticket
= quantity demanded
substitute
complementary
unrelated
Py price of a bus ticket
P₂ = price of gasoline
Y consumer income
.
According to the above equation, airline tickets and bus tickets are (1).
goods.
If, in equilibrium, the cross-price elasticity between airline tickets and gasoline is 1.9; when the price of the gasoline increases by 1%, the
quantity demanded of airline tickets increases by
% (enter your response rounded to two decimal places).

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