Given the demand for Bus services Q = 485 – 5P+ 7Pp +3PT+ 1.5Y, where Y = 10 000 P = 100, price for train PT = 50 and the price for planes Pp = 100. a) Can we say that “Bus services are inferior or normal services Providers” backbone your answer. b) Do you think that train and planes are substitutes or complementary service providers to the bus service, support your answer with empirical results.

Given the demand for Bus services Q = 485 – 5P+ 7Pp +3PT+ 1.5Y, where Y = 10 000 P = 100, price for train PT = 50 and the price for planes Pp = 100. a) Can we say that “Bus services are inferior or normal services Providers” backbone your answer. b) Do you think that train and planes are substitutes or complementary service providers to the bus service, support your answer with empirical results.

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

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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