The equation for a demand curve has been estimate to be Q = 100 - 10P + 0.5Y, where Q is quantity, P is price, and Y is income. Assume that p = 7 Y = 50.

a. Interpret the equation
b.At a price of 7, what is price elasticity?
c. At an income level of 50, what is income elasticity?
d. Now assume income is 70, what is the price elasticity at P = 8?

1 answer

To answer my questions

Ask a New Question or answer this question.

Similar Questions

When there is an inferior good, a decrease in consumer income will result in the A.demand curve shifting to the right. demand
1. 1 answer
When there is a normal good, a decrease in consumer income will result in the A.demand curve shifting to the right. demand
1. 1 answer
Exercise 1The marketing manager has estimated the company’s demand curve with the equation P=3000 – 40Q. To develop a deeper
1. 0 answers
Choose the best answer.What is the term for a line graph that depicts the relation of supply and demand to price? market curve
1. 1 answer