Consider the demand function for good1, Q1 = 2536 - 8P1 + 0.6000000000000001P2 - 1.75P3 + 0.05Y Where, price of good1 (P1) is 42, price of good2 (P2) is 197, price of good3 (P3) is 155, and income (Y) is 47792; (a) Find the price elasticity of demand (PED). (b) Find the income elasticity of demand (YED). (c) Find the cross-price elasticity of demand (XED) between good1 and good3. (d) Estimate the percentage change in the demand for good1 resulting from a 6% decrease in the price of good2. (e) Based on the value of YED, comment on the nature/type of the goods. (f) Based on the value of the XED between good 1 and good3, comment on the relationship between these two goods. Iknow its more than three questions but whoever solve 1,2,3 will able to solve rest. please solve all.
Consider the demand function for good1, Q1 = 2536 - 8P1 + 0.6000000000000001P2 - 1.75P3 + 0.05Y
Where, price of good1 (P1) is 42, price of good2 (P2) is 197, price of good3 (P3) is 155, and income (Y) is 47792;
(a) Find the
(b) Find the income elasticity of demand (YED).
(c) Find the cross-price elasticity of demand (XED) between good1 and good3.
(d) Estimate the percentage change in the demand for good1 resulting from a 6% decrease in the price of good2.
(e) Based on the value of YED, comment on the nature/type of the goods.
(f) Based on the value of the XED between good 1 and good3, comment on the relationship between these two goods.
Iknow its more than three questions but whoever solve 1,2,3 will able to solve rest. please solve all.
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