Calculate the price and cross-price elasticities of demand for coconut oil. The coconut oil demand function (Buschena and Perloff, 1991) is Q = 1,200 – 9.5p + 16.2p, + 0.2Y, where Q is the quantity of coconut oil demanded in thousands of metric tons per year, p is the price of coconut oil in cents per pound, p, is the price of palm oil in cents per pound, and Y is the income of consumers. Assume that p is initially 45¢ per pound, p, is 25¢ per pound, and Q is 1,143 thousand metric tons per year. The price elasticity of demand is . (Enter a numeric response using a real number rounded to three decimal places.)
Calculate the price and cross-price elasticities of demand for coconut oil. The coconut oil demand function (Buschena and Perloff, 1991) is Q = 1,200 – 9.5p + 16.2p, + 0.2Y, where Q is the quantity of coconut oil demanded in thousands of metric tons per year, p is the price of coconut oil in cents per pound, p, is the price of palm oil in cents per pound, and Y is the income of consumers. Assume that p is initially 45¢ per pound, p, is 25¢ per pound, and Q is 1,143 thousand metric tons per year. The price elasticity of demand is . (Enter a numeric response using a real number rounded to three decimal places.)
Chapter5: Elasticity Of Demand And Supply
Section: Chapter Questions
Problem 1.1P: (Calculating Price Elasticity of Demand) Suppose that 50 units of a good are demanded at a price of...
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![Calculate the price and cross-price elasticities of demand for coconut oil. The coconut oil demand function (Buschena and Perloff, 1991) is
Q = 1,200 – 9.5p + 16.2p, + 0.2Y,
where Q is the quantity of coconut oil demanded in thousands of metric tons per year, p is the price of coconut oil in cents per pound, p, is the price of palm oil in cents
per pound, and Y is the income of consumers. Assume that p is initially 45¢ per pound, p, is 25¢ per pound, and Q is 1,143 thousand metric tons per year.
Inco
The price elasticity of demand is . (Enter a numeric response using a real number rounded to three decimal places.)
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DD
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80
F8
F9
F7
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F4
F5
F2
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另](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2b4f5cdf-1e5a-4f31-b5ba-cbf351bc8909%2Fe753bfec-eacf-46d1-895b-3ac7e7f7929c%2F3bdd3op_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Calculate the price and cross-price elasticities of demand for coconut oil. The coconut oil demand function (Buschena and Perloff, 1991) is
Q = 1,200 – 9.5p + 16.2p, + 0.2Y,
where Q is the quantity of coconut oil demanded in thousands of metric tons per year, p is the price of coconut oil in cents per pound, p, is the price of palm oil in cents
per pound, and Y is the income of consumers. Assume that p is initially 45¢ per pound, p, is 25¢ per pound, and Q is 1,143 thousand metric tons per year.
Inco
The price elasticity of demand is . (Enter a numeric response using a real number rounded to three decimal places.)
tv
2
MacBook Air
DII
DD
F10
F1
80
F8
F9
F7
F6
F4
F5
F2
F3
另
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