For the demand function Q = 800 - 6P +2A² – 0.005Y² where P is the price of the good, A is the alternative price of an alternative good, and Y the income of the consumers. When. P = 5, A = 5 and Y = 120 - 1. the price elasticity of demand is 2. the cross-price elasticity of demand is 3. the income elasticity of demand is 4. Is the good superior or inferior? 5. Is the alternative good a substitute or a complement?

College Algebra (MindTap Course List)
12th Edition
ISBN:9781305652231
Author:R. David Gustafson, Jeff Hughes
Publisher:R. David Gustafson, Jeff Hughes
Chapter4: Polynomial And Rational Functions
Section4.1: Quadratic Functions
Problem 6SC: A company that makes and sells baseball caps has found that the total monthly cost C in dollars of...
icon
Related questions
Question
For the demand function
Q = 800 - 6P +2A² -0.005Y²
where P is the price of the good, A is the
alternative price of an alternative good, and Y
the income of the consumers.
When. P = 5, A = 5 and Y = 120
1. the price elasticity of demand is
2. the cross-price elasticity of demand is
3. the income elasticity of demand is
4. Is the good superior or inferior?
5. Is the alternative good a substitute or
complement?
Enter non-integer numerical values as
decimals to at least 3 decimal
places. Note: you must use a . and not, for a
decimal point.
Transcribed Image Text:For the demand function Q = 800 - 6P +2A² -0.005Y² where P is the price of the good, A is the alternative price of an alternative good, and Y the income of the consumers. When. P = 5, A = 5 and Y = 120 1. the price elasticity of demand is 2. the cross-price elasticity of demand is 3. the income elasticity of demand is 4. Is the good superior or inferior? 5. Is the alternative good a substitute or complement? Enter non-integer numerical values as decimals to at least 3 decimal places. Note: you must use a . and not, for a decimal point.
Expert Solution
steps

Step by step

Solved in 3 steps with 2 images

Blurred answer
Recommended textbooks for you
College Algebra (MindTap Course List)
College Algebra (MindTap Course List)
Algebra
ISBN:
9781305652231
Author:
R. David Gustafson, Jeff Hughes
Publisher:
Cengage Learning
Algebra for College Students
Algebra for College Students
Algebra
ISBN:
9781285195780
Author:
Jerome E. Kaufmann, Karen L. Schwitters
Publisher:
Cengage Learning
Glencoe Algebra 1, Student Edition, 9780079039897…
Glencoe Algebra 1, Student Edition, 9780079039897…
Algebra
ISBN:
9780079039897
Author:
Carter
Publisher:
McGraw Hill
College Algebra
College Algebra
Algebra
ISBN:
9781337282291
Author:
Ron Larson
Publisher:
Cengage Learning
College Algebra
College Algebra
Algebra
ISBN:
9781305115545
Author:
James Stewart, Lothar Redlin, Saleem Watson
Publisher:
Cengage Learning
Functions and Change: A Modeling Approach to Coll…
Functions and Change: A Modeling Approach to Coll…
Algebra
ISBN:
9781337111348
Author:
Bruce Crauder, Benny Evans, Alan Noell
Publisher:
Cengage Learning