Suppose you decide to produce a product and you discover it has a demand function given by;
Q = 10P^-0.5Y^0.75
(I) calculate the price elasticity of demand for the product.
(ii) calculate the income elasticity of demand.
Respond to this Question
Suppose you decide to produce a product and you discover it has a demand function given by;
Q = 10P^-0.5Y^0.75
(I) calculate the price elasticity of demand for the product.
(ii) calculate the income elasticity of demand.
3 answers
Ed=10
Ed = 5