■ Suppose Dp is the demand curve for plantain, and it is given as; Dp = 5000-3Pp+5Py-Pc +0.1 Y ■ where Pp is price of plantain, Py is price of yam, Pc is price of cassava, Y is income of the consumer. ■ Given Pp = 200, Py = 300, Pc = 500 and Y = 5000 calculate 1 Price elasticity of demand 2 Cross-Price elasticity of demand 3 Income elasticity of demand ■ From your estimations, what inferences can be drawn about the nature of plantain to the consumer.

■ Suppose Dp is the demand curve for plantain, and it is given as; Dp = 5000-3Pp+5Py-Pc +0.1 Y ■ where Pp is price of plantain, Py is price of yam, Pc is price of cassava, Y is income of the consumer. ■ Given Pp = 200, Py = 300, Pc = 500 and Y = 5000 calculate 1 Price elasticity of demand 2 Cross-Price elasticity of demand 3 Income elasticity of demand ■ From your estimations, what inferences can be drawn about the nature of plantain to the consumer.

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

- Suppose Dp is the demand curve for plantain, and it is given
as;
Dp 3 5000 - ЗРр + 5Ру — Ре + 0.1Y
1 where Pp is price of plantain, Py is price of yam, Pc is price of
cassava, Y is income of the consumer.
1 Given Pp = 200, Py = 300, Pc = 500 and Y = 5000 calculate
1 Price elasticity of demand
2 Cross-Price elasticity of demand
3 Income elasticity of demand
1 From your estimations, what inferences can be drawn about
the nature of plantain to the consumer.
47 /156

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