Demand function has been estimated for machines

Assignment Help Business Economics

Reference no: EM13831171

The following demand function has been estimated for Fantasy Pinball machines: Qd = 3500- 40P + 17.5Px + 670U + 0.0090A + 6500N

Where P = monthly rental price of fantasy pinball machines, Px = Monthly rental price of old Chicago pinball machines. U= Current unemployment rate in the 10 largest area A = Advertising expenditure for Fantasy pinball machines, N = Fraction of the US. Population between ages 10 and 30

(i) The point Price elasticity of demand for Fantasy pinball machines when P =$150, Px=$100, U = .12, A =$200,000 and N =.35

(ii) The point cross elasticity of demand with respect to Old Chicao pinball machines for hte values of the independent variables given in (i)?

Reference no: EM13831171

Questions Cloud

Substitution effect and income effect when price of good : Comment about substitution effect and income effect when price of good one alone decreases if the goods are perfect substitutes.

Eliminate scarcity as an economic problem : Which of the following would eliminate scarcity as an economic problem? Moderation of people’s competitive instincts. Discovery of large new energy reserves. Resumption of steady productivity growth. None of the above because scarcity cannot be elim..

Individual abilities and linguistic-social : Each child approaches, interacts, and processes their world in unique ways. Effective assessment takes this uniqueness into account through sensitivity to individual abilities and linguistic, social, and cultural differences.

What the factors exerting influence on price elasticities : Elasticity shows the responsiveness of supply or demand to changes in price. What are the factors exerting influence on price elasticities of supply and demand

Demand function has been estimated for machines : The following demand function has been estimated for Fantasy Pinball machines: Qd = 3500- 40P + 17.5Px + 670U + 0.0090A + 6500N. Where P = monthly rental price of fantasy pinball machines, Px = Monthly rental price of old Chicago pinball machines. Th..

Significant use of extended monologues : In Hamlet, Shakespeare makes significant use of extended monologues, or soliloquies, to express the thoughts and feelings of Hamlet in dramatic form. For this assessment, write an essay in which you explore the use of this technique in three disti..

Computers ensure public knowledge is instantly embodied : High-frequency trading involves scanning the latest news and stock quotes with high-tech computers and using the information to trade stocks very quickly. Because it is highly automated, it happens a thousand times faster than an eye can blink. Compu..

Backward bending price consumption curve : Prove that giffen goods have a positively sloped demand curve and a backward bending price consumption curve.

The price elasticity of demand for two customer segments : KING Airlines has determined that the price elasticity of demand for two customer segments (Business Class and Coach) is -1.50 and -1.75. Based on their expectations of profitability, KING realizes the price of a Coach Seat should be $155 (one way). ..

User Account

All Pages