The demand function for bicycles in Holland has been estimated to be Q = 2,000+ 15Y - 7.5P where Y is income in thousands of euro, Q is the quantity demanded in units, and P is the price per unit. When P = 150 euro and Y = 15,000 euro, what is: The price elasticity of demand? O -1.02 O -7.5 -0.24 O -0.50 The income elasticity of demand? O 0.20 O 1.02 O 1.00 O 0.14

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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The demand function for bicycles in Holland has been estimated to be
Q = 2,000+ 15Y - 7.5P
=
where Y is income in thousands of euro, Q is the quantity demanded in units, and P is the price per unit. When P = 150 euro and Y
what is:
The price elasticity of demand?
-1.02
O -7.5
-0.24
-0.50
The income elasticity of demand?
0.20
1.02
1.00
O 0.14
15,000 euro,
Transcribed Image Text:The demand function for bicycles in Holland has been estimated to be Q = 2,000+ 15Y - 7.5P = where Y is income in thousands of euro, Q is the quantity demanded in units, and P is the price per unit. When P = 150 euro and Y what is: The price elasticity of demand? -1.02 O -7.5 -0.24 -0.50 The income elasticity of demand? 0.20 1.02 1.00 O 0.14 15,000 euro,
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