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

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

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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