Q= 700 7P+3A³ +0.008Y? %3D where P is the price of the good, A is the alternative price of an alternative good, and Y the i the consumers. When P = 6, A = 3 and Y = 90 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 is a substitute or a complement?

Q= 700 7P+3A³ +0.008Y? %3D where P is the price of the good, A is the alternative price of an alternative good, and Y the i the consumers. When P = 6, A = 3 and Y = 90 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 is a substitute or a complement?

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter5: Elasticity

Section: Chapter Questions

Problem 31CTQ: Economists define normal goods as having a positive income elasticity. We can divide normal goods...

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