a) The market research department of Lamex Enterprises has determined that the demand for good X is Q = 1,200 - 4 P+0.031-25PZ, where P is the price of good X, I is consumer income, and Pz is the price of good Z. Suppose that P = Ksh 6, I = Kshs 25,000, and Pz - Ksh15. (iii) At P = Ksh 6, compute the income elasticity of demand for good X.

a) The market research department of Lamex Enterprises has determined that the demand for good X is Q = 1,200 - 4 P+0.031-25PZ, where P is the price of good X, I is consumer income, and Pz is the price of good Z. Suppose that P = Ksh 6, I = Kshs 25,000, and Pz - Ksh15. (iii) At P = Ksh 6, compute the income elasticity of demand for good X.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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