Consider the following demand function for good 'X':Q = 9-0.1p, - Py + 0.01p, + 0.001Y, wherePrice of a related good, P= $3Price of a related good, P, = $275Own price, P,= $30Quantity demanded = 35.75Consumer income, Y = $30,000The income elasticity of demand, E, when eguilibrium quantity is 35.75 units and income is $30,000 is equal to. (Enter a numeric response using a real numberrounded to three decimal places.)O etvMacBook AirDIIDD80F10F7F8F4F5F2F3EI$%&!@79134QWERTYDFHJKACVNMcommandtioncommand.. .-V -* 00* :

Income elasticity of demand depicts how much consumer responds with the change in his income.

Answered: Consider the following demand function…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Assume that the demand curve is a straight line. If the price per unit of a good rises from $6 to X1, it is expected that monthly demand will fall from X2 units to 1,000,000 units. Give your own appropriate X1 and X2. What is the point price elasticity of demand when the price is $6? What is the arc price elasticity of demand over these ranges of price and output? Is the demand for this good price sensitive?
The following graph plots a supply curve for some hypothetical good. PRICE (Dollars per unit) 270 135 W True False QUANTITY (Units) Elastic II II II II II II 88 99 For each of the regions, use the midpoint method to identify whether the supply of this good is elastic or inelastic. Region Inelastic Between V and W Between X and Y Supply ? True or False: As firms reach near maximum capacity at high levels of quantity supplied, supply becomes more elastic because firms may need to invest in additional capital in order to further increase production.
a demand function for a good is q=56.6-0.25p-0.4sp+0.6n Where q is quantity demand per week, p is the price per unit m is the average weekly income, ps is the price of a competing good and n is the population in millions. Given values are p=65, m=350, ps=60 and n= 24 1. Calculate the price elasticity of demand 2. Find out what would happen to(a) if n rose to 26 3.explain why this is inferior good
find the own price elasticity of demand of good x
Suppose the price elasticity of demand for farm products is elastic. If federal government wants to follow a policy of increasing income for farmers, what type of programs will the government enact?
Suppose the demand equation is: Q = 80 - 0.75p. What is the price elasticity of demand if the price is $40 per unit and output is 50 units? The price elasticity of demand is . (Enter a numeric response using a real number rounded to two decimal places.) This means that if the price increases by 3%, the quantity demanded will V by %. (Enter a numeric response using a real number rounded to two decima. places.) Reacti tv MacBook Air 80 DII DD F1 F2 F3 F4 F5 F6 F7 F8 F9 F10 F11 ! @ #3 & 1 3 8 9. Q W E R T Y { A F J K C V M く tion command command option .. .. ど * CO つエ H
What is the elasticity of demand for the following demand curve. Qp = 100 - 10p at p = 4 ? ε = 5/2 Oε = -5/2 ε = -2/3 O ε = 2/3 None of the above No answer
If the price elasticity of demand is equal to 2, a 1 percent increase in price will cause the quantity demanded to__by___ percent?
Suppose demand for good A is given by DA = 500 - 10 Pa + 2 Pb + 0.70I where Pa is the price of good A, Pb is the price of some other good B, and I is income. Assume that Pa is currently $10, Pb is currently $5, and I is currently $100. a. What is the elasticity of demand for good A with respect to the price of good A at the current situation? Interpret the nature of elasticity of demand. b. If price of good A changes by 10% by how much percent would demand for the good change? c. Given your answer in part (a) and (b) above, would you suggest a price reduction or increase to boost sales of good A? d. What is the cross-price elasticity of the demand for good A with respect to the price of good B at the current situation? What is the relationship between good A and B? e. What is the income elasticity of demand for good A at the current situation and the nature of the good?
The extended demand function of good X is: QDX = 1400 20 PX - 10 PY + 0.1 M where: QDX = quantity demanded of good X PX Price of good X PY = Price of related good Y (related in consumption to good X) M = Average consumer income. Fix the following variables: PX = 50 M = 10,000 Assume: PY changes from $50 to $80 What is the cross-price elasticity of the demand of good X with respect to PY [Use the arc elasticity formula.] a. -0.69 b. C. d. -0.87 Based on your answer to the previous question, goods X and Y are: b. 0.69 a. inelastic C. 0.87 d. complements inferior substitutes
What is the elasticity of demand for the demand curve Q = 10 – 5P when P=1?
The demand and supply functions for a product are: Qd = 600 - 4P1 + 2P2 Qs = 200 + 3P1 where Qd is the quantity demanded, Qs is the quantity supplied, P1 is the price of the product, and P2 is the price of a substitute product. Assume that P2 = $10. Find the equilibrium price and quantity, the price elasticity of demand, and the cross-price elasticity of demand with respect to the price of the substitute product I need the answer urgently

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