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Determine the price elasticity of demand

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Reference no: EM133116325

The following demand function for readymade trousers has been estimated. Q = 2,000 + 15Y - 5.5P

Where Y is Income in thousands of shillings, Q is the quantity demanded in units and P is the price per unit. The Initial Price (P) is 150 and Income is Kshs. 15,000.

a. Determine the Price Elasticity of Demand.

b. Determine the Income Elasticity of Demand.

c. Determine what effect arise in price would have on Total Revenue.

d. Assess how sale of trousers would change during a period of rising incomes.

Reference no: EM133116325

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