Q6The demand function for applesis the following.Qn = 10 - Pn + 0.2Y +0.5 P.- 2P, + 0.2AWhere:Qn = annual sales of apples(millions of kilos)Pn = price of apples (£1 per kilo)Y = disposable income in theUK £trillions (£10 trillions)Pc = price of a pies £ per kilo (£2per kilo)Ps = price of pear (£2 per kilo)A = advertising measured inhundreds of thousands of £5(use as 5 in your calculations) What is the own price elasticity ofdemand in Question 6 and what kindof product apple is?O -1/9, inelastic.O 1/9, inelastic.O -2, inelastic.-0.5, elastic.All the other answers are wrong.

Solution Given demand function Qn=10-Pn+0.2Y+0.5Pc-2Ps+0.2A ............. (1) Pn =1…

Answered: The demand function for apples is the…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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