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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