Suppose that you estimated the following demand curve for footballs. Q = 400 - 6P +.0051 Q Represents quantity demanded P represents price and I represents average income You know that the current market price is $50 and average income is $20,000 a) Calculate current demand. b) Calculate the price elasticity of demand.

Suppose that you estimated the following demand curve for footballs. Q = 400 - 6P +.0051 Q Represents quantity demanded P represents price and I represents average income You know that the current market price is $50 and average income is $20,000 a) Calculate current demand. b) Calculate the price elasticity of demand.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter6: Elasticities

Section: Chapter Questions

Problem 8P: If the elasticity of demand for hamburgers equals 21.5 and the quantity demanded equals 40,000,...

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