Consider the following demand function for airline tickets (quantities are in thousands):Q = 10 -0.1p, + 0.4p, +0.25p, + 0.005Y, whereP, = price of an airline ticketQ = quantity demandedPy = price of a bus ticketP2 = price of gasolineY = consumer incomeAccording to the above equation, airline tickets and bus tickets aregoods.étvTeach MeMacBook Air80DIIDDescF2F3F4F7F8F9F10!@$&1234578{QWETYPtabAKこのエ

The demand function of a product depicts the relation between the quantity demanded of a product and…

Answered: Q = 10-0.1p, + 0.4p, +0.25p, +0.005Y,…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question 14 a). The demand for good A is written as follows: Q₁ = 300-3PA +2PB-0.2Y where Q₁ is the quantity demanded of good A, P, is the price of good A in dollars, P₁ is the price of good B in dollars, and Y is the consumer's income in dollars. If P₁ = $10 and P₂ = $15 (i) Calculate the quantity of good A demanded when Y = $500 and when Y = $1000 (ii) Calculate the income elasticity of demand for good A. According to your answer, is the good a normal or an inferior one? b). Consider the case where the manager of Asylum finds that customers fell from 250 to 50 on Sunday nights when the price of admission was increased from $200 to $300. Calculate the price elasticity of demand. Comment on the demand for night activity.
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Task 2 - Below is a hypothetical demand and supply for apartments. Answer the following questions below using as basis the schedule given: Number of Apts. Number of Apts. Supplied/Month Rent/Month (Php) Demanded/Month 1 120,000 200 100,000 20,000 400 80,000 40,000 600 60,000 60,000 800 40,000 80,000 1000 20,000 100,000 1200 120,000 1. Draw the demand and supply curves for apartments using the schedule above. 2. What is the equilibrium rent per month? At this rent, what is the number of apartments demanded and supplied per month? 3. At P400 rent per month what will be the demand and supply of apartments? Will there be a surplus or shortage of supply? Explain your answer. 4. At 800 rent per month what will be the demand and supply of apartments? Will there be a surplus or shortage of supply? Explain your answer.
QUESTION 5 Refer to Figure 1 below: Price (dollar) Z W •D₂ Quumtity . A movement from point Z to point V could have been the result of a price increase. an increase in buyers' income (assuming that this is a normal good). an increase in the price of a complement to this good. a decrease in the number of buyers.
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1a) Graph the demand curve for a product given by the equation P=16-0.5Q. 1b) Which of the following statements is accurate? a. The max willingness to pay for the 10 unit is $6. b. If the price is $8, the quantity demanded is 8 units. c. The max willingness to pay for the 8th unit is $12. d. If the price is $6, the quantity demanded is 18 units. e. None of the above.
34 - Which of the following is an example of substitute goods? a) cola-sugar B) cigarette-lighter C) minibus-bus D) door-door handle TO) Ayran-yoghurt

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Q = 10-0.1p, + 0.4p, +0.25p, +0.005Y, where P, = price of an airline ticket Py = price of a bus ticket P2 = price of gasoline Q = quantity demanded Y = consumer income cording to the above equation, airline tickets and bus tickets are V goods.