Determine cross price elasticity with good

Reference no: EM13177839

Using the following equation for the demand for a good or service, calculate the price elasticity of demand,cross price elasticity with good x, and income elasticityt.

Q= 8 - 2p + 0.10I + Px

Where Q is quantity demanded, p is the price, I is income, and Px is the price of a realeted good, Assume that p=$10,I =100, and Px=20.

Reference no: EM13177839

Questions Cloud

How does an expansionary monetary policy work : How does an expansionary monetary policy work? (Describe the steps through which an increase in money supply affects the real GDP). How does fiscal policy work? (Describe the steps through which an increase in G or TR, or a decrease in TX, affects..

Calculate the dead weight loss caused by the tax : Draw a supply and demand diagram 2. In equilibrium, how many packs of cigarettes are purchased? What is the equilibrium price? What is consumer surplus and producer surplus in equilibrium? 3. Suppose that a flat tax of $1.50 per unit is imposed on ..

Why are bond markets important : What are the four phases of a business cycle? How does money supply affect business cycles? What is the relationship between money supply growth and inflation? What is monetary policy? What is fiscal policy? What is the foreign exchange market?

Calculate measurement error using mse and mad : Calculate a 5-year weighted moving average to forecast the number of mergers for 2012. Use weights of 0.10, 0.15, 0.20, 0.25, and 0.30, with the most recent year weighted being the largest. Use regression analysis to forecast the number of mergers..

Determine cross price elasticity with good : Using the following equation for the demand for a good or service, calculate the price elasticity of demand,cross price elasticity with good x, and income elasticityt. Q= 8 - 2p + 0.10I + Px, Where Q is quantity demanded, p is the price, I is inco..

What is the profit maximizing condition for the firm : Suppose that there is an adverse oil supply shock. Show the impact that this has on the production function, the labor market (i.e. on equilibrium wage and labor), and on the actual amount of output. SHOW a diagram and DISCUSS your findings.

Which is the first step in market segmentation : When Hallmark stores offer a product line that includes everything you need to have a Spiderman theme birthday party, what is the primary segmenting dimension that Hallmark is using? Which is the first step in market segmentation?

What will demand for labor be for a nominal wage : the Marginal product of labor (measured in units of output) for a firm is:MPN = A(100 - N) Where A measures productivity and N is the number of labor hours used in production. The price of output is $2.00 per unit. if A = 1, what will demand for labo..

Determine the total quantity of monthly accounts : In a local market, the monthly price of internet access service decreases from $30 to $20, and the total quantity of monthly accounts across all internet access providers increases from 90,000 to 190,000.

User Account

All Pages