5. The demand equation for a good is given by the equation:Q, = 520 – 20P, + 0.6Y + 2.9P,a. Find the price, income and cross price elasticity of demand when P, = 10, Y == 21700 andb. Discuss the effect on demand if there were a 20% increase in pricec. Discuss the effect on demand if there were a 50% decrease in income

here the demand equation is:- Qx=520-20Px+0.6Y+2.9Py where,Px=10Y=700Py=21 So,…

5. The demand equation for a good is given by the equation: Q₁ = 520-20P, +0.6Y +2.9P, a. Find the price, income and cross price elasticity of demand when P, =10, Y = 700 and P₁ = 21 b. Discuss the effect on demand if there were a 20% increase in price c. Discuss the effect on demand if there were a 50% decrease in income

5. The demand equation for a good is given by the equation: Q₁ = 520-20P, +0.6Y +2.9P, a. Find the price, income and cross price elasticity of demand when P, =10, Y = 700 and P₁ = 21 b. Discuss the effect on demand if there were a 20% increase in price c. Discuss the effect on demand if there were a 50% decrease in income

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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