Calculate the price elasticity of demand for vcrs

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Reference no: EM13234921

The demand function for VCRs has been estimated to be Q_v=134-1.07P_t+46P_m-2.1P_v-5M , where Q_v is the quantity of VCRs, P_t is the price of a videocassette, P_m is the price of a movie, P_v is the price of a VCR, and M is income. Based on this information, answer the following questions.

a. Are VCRs normal or inferior goods?

b. Are movies substitutes or complements for VCRs?

c. What additional information is needed to calculate the price elasticity of demand for VCRs?

Reference no: EM13234921

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