The demand equation for a good is given by the equation: Q = 700 – 2P + 0.02Y (Where P is the price and Y is the income). Determine the following: Price elasticity of demand when P = $25 and Y = $500. Income elasticity of demand when P = $25 and Y = $500. Interpret the results obtained in (a) & (b) above.

The demand equation for a good is given by the equation: Q = 700 – 2P + 0.02Y (Where P is the price and Y is the income). Determine the following: Price elasticity of demand when P = $25 and Y = $500. Income elasticity of demand when P = $25 and Y = $500. Interpret the results obtained in (a) & (b) above.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Subpart 1-3
please help the answers I got were wrong!!!