Consider the following demand function for airline tickets (quantities are in thousands): Q = 10 -0.1p, + 0.4p, + 0.25p, +0.005Y, where P, = price of an airline ticket Py = price of a bus ticket Q = quantity demanded P2 = price of gasoline Y = consumer income According to the above equation, airline tickets and bus tickets are substitute goods. If, in equilibrium, the cross-price elasticity between airline tickets and gasoline is 0.8; when the price of the gasoline increases by 4%, the quantity demanded of airline tickets increases by % (enter your response rounded to two decimal places).
Consider the following demand function for airline tickets (quantities are in thousands): Q = 10 -0.1p, + 0.4p, + 0.25p, +0.005Y, where P, = price of an airline ticket Py = price of a bus ticket Q = quantity demanded P2 = price of gasoline Y = consumer income According to the above equation, airline tickets and bus tickets are substitute goods. If, in equilibrium, the cross-price elasticity between airline tickets and gasoline is 0.8; when the price of the gasoline increases by 4%, the quantity demanded of airline tickets increases by % (enter your response rounded to two decimal places).
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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Transcribed Image Text:Consider the following demand function for airline tickets (quantities are in thousands):
Q = 10 -0.1p, + 0.4p, +0.25p, + 0.005Y, where
P = price of an airline ticket
Q = quantity demanded
Py = price of a bus ticket
P, = price of gasoline
Y = consumer income
According to the above equation, airline tickets and bus tickets are substitute
goods.
If, in equilibrium, the cross-price elasticity between airline tickets and gasoline is 0.8; when the price of the gasoline increases by 4%, the quantity demanded of airline tickets increases by
% (enter your
response rounded to two decimal places)
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