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Kk177. Suppose the market demand function is given as; Qd = 5I + 10P_1 − 0.4P^2 where I is income in $1000 and P1 is price of a related good. (a) What is the relation between these two goods? (b) Calculate the income, cross price, and own price elasticities of demand if I = $50,000, P1 = $10 and P = $20. (c) At what price is demand unit elastic if I = $50,000 and P1 = $10?

Kk177. Suppose the market demand function is given as; Qd = 5I + 10P_1 − 0.4P^2 where I is income in $1000 and P1 is price of a related good. (a) What is the relation between these two goods? (b) Calculate the income, cross price, and own price elasticities of demand if I = $50,000, P1 = $10 and P = $20. (c) At what price is demand unit elastic if I = $50,000 and P1 = $10?

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
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Kk177.

Suppose the market demand function is given as;
Qd = 5I + 10P_1 − 0.4P^2
where I is income in $1000 and P1 is price of a related good.
(a) What is the relation between these two goods?
(b) Calculate the income, cross price, and own price elasticities of demand if I = $50,000, P1 = $10 and P = $20.
(c) At what price is demand unit elastic if I = $50,000 and P1 = $10?

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