Please solve question-04 accurate 4) Suppose that you have the following demandcurve.Q = 400 – 6P + 0.0051WhereQ = quantity demanded,P = price, and%3D| = average income.You know that the current market price is ZMW20 andaverage income is ZMW20,000a)Calculate current demand.b)Calculate the price elasticity of demand.c)Calculate the income elasticity of demand.

Q = 400 - 6P + 0.005 I where , Q = Quantity demanded…

Answered: rerage income is ZMW20,000 Calculate…

rerage income is ZMW20,000 Calculate current demand. Calculate the price elasticity of demand. Calculate the income elasticity of demand.

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter5: Elasticity Of Demand And Supply

Section: Chapter Questions

Problem 4.9P: (Other Elasticity Measures) Complete each of the following sentences: a. The income elasticity of...

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Question

Please solve question-04 accurate

4) Suppose that you have the following demand
curve.
Q = 400 – 6P + 0.0051
Where
Q = quantity demanded,
P = price, and
%3D
| = average income.
You know that the current market price is ZMW20 and
average income is ZMW20,000
a)
Calculate current demand.
b)
Calculate the price elasticity of demand.
c)
Calculate the income elasticity of demand.

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