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?
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