The demand-function for a given consumer good (A) is given as: Qа 3D 1400 — 4Pа - 2Рв — 0.0051 Where PA = 200 Dkk is the price for good A, PB= 50 Dkk is the price for good B, and I= 20,000 Dkk is the disposable income. Question 2.1 Provide examples of three more factors that influence demand of consumer good A, besides the ones presented in the equation above. Briefly explain why and how they would influence demand. Question 2.2. Find price point elasticity for good A and provide an economic interpretation. Question 2.3. Find cross price elasticity between goods A and B and provide an economic interpretation.
The demand-function for a given consumer good (A) is given as: Qа 3D 1400 — 4Pа - 2Рв — 0.0051 Where PA = 200 Dkk is the price for good A, PB= 50 Dkk is the price for good B, and I= 20,000 Dkk is the disposable income. Question 2.1 Provide examples of three more factors that influence demand of consumer good A, besides the ones presented in the equation above. Briefly explain why and how they would influence demand. Question 2.2. Find price point elasticity for good A and provide an economic interpretation. Question 2.3. Find cross price elasticity between goods A and B and provide an economic interpretation.
Chapter1: Making Economics Decisions
Section: Chapter Questions
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![The demand-function for a given consumer good (A) is given as:
Qа 3D 1400 — 4Pа - 2Рв — 0.0051
Where PA = 200 Dkk is the price for good A, PB= 50 Dkk is the price for good B, and I= 20,000 Dkk
is the disposable income.
Question 2.1
Provide examples of three more factors that influence demand of consumer good A, besides the ones
presented in the equation above. Briefly explain why and how they would influence demand.
Question 2.2.
Find price point elasticity for good A and provide an economic interpretation.
Question 2.3.
Find cross price elasticity between goods A and B and provide an economic interpretation.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F114d5c3c-b1aa-4fb6-9366-9e95e20cb51d%2F05389697-aaed-4388-bfa6-c9bf6cf77f5e%2Frdycdir.png&w=3840&q=75)
Transcribed Image Text:The demand-function for a given consumer good (A) is given as:
Qа 3D 1400 — 4Pа - 2Рв — 0.0051
Where PA = 200 Dkk is the price for good A, PB= 50 Dkk is the price for good B, and I= 20,000 Dkk
is the disposable income.
Question 2.1
Provide examples of three more factors that influence demand of consumer good A, besides the ones
presented in the equation above. Briefly explain why and how they would influence demand.
Question 2.2.
Find price point elasticity for good A and provide an economic interpretation.
Question 2.3.
Find cross price elasticity between goods A and B and provide an economic interpretation.
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