Calculate the markets total demand

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Reference no: EM132790000

Suppose that you have estimated the following demand curve: QDP I = 1200 - 4+ .01

You know that the current market price is $11 and average income (I) is $40,000.

a) Calculate the markets total Demand?

b) Calculate the market's consumer surplus.

c) Calculate the price elasticity of demand.

d) Is the price elasticity of demand calculated in Question #1c elastic or inelastic?

e) Calculate the income elasticity of demand

f) Based on the income elasticity of demand calculated in Question #1e, is this product a normal good or an inferior good?

Reference no: EM132790000

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