Determining-interpreting elasticities of demand

Assignment Help Microeconomics
Reference no: EM1367138

In Qx = 3-0.5 in Px - 2.5 In Py + lnM + 2lnA

ln being natural log

Where

Px = $10
Py = $4
M = $20,000
A - $250

a) Determine the own price elasticity of demand and state whether demand is elastic, inelastic or unitary elastic

b) Determine the cross price elasticity of demand between good X and good Y and state whether these two goods are substitutes or compliments

c) Determine the income elasticity of demand state whether good X is normal or inferior

d) Determine the own advertising elasticity of demand

Reference no: EM1367138

Questions Cloud

Describing equilibrium quantity and price : Assume that the demand changes to QD = 600-2P and the supply function stays the same. Graph the new situation in Excel. Find the new equilibrium price and quantity, and show it on your graph.
Company-s interpretation of requirement of system : You have taken job with a software user who has contracted previous employer to develop a system for them. You discover that your company's interpretation of requirements is different from interpretation.
Various problems with infant health : Maternal smoking during pregnancy has been implicated in various problems with infant health.
Primary and secondary sites of the cancer : When presented with a medical record that states the patient's cancer has metastasized, what process do you use to determine the primary and secondary sites of the cancer?
Determining-interpreting elasticities of demand : Find out the own price elasticity of demand and state whether demand is elastic, inelastic or unitary elastic. Determine the income elasticity of demand state whether good X is normal or inferior
Sketch object-oriented model for private airport database : Sketch an object-oriented model for a small private airport database that is used to keep track of airplanes, their owners, airport employees, and pilots.
Influence patient education in health care : Discuss in detail, older adult patient education issues and the influence patient education has in health care using the experiences this patients following interview.
Valuation of call option : A European Call Option on a non dividend paying stock where stock value is $40, the strike price is $40, the risk-free rate is 4 percent per annum, the volatility is 30 percent per annum,
Determining equilibrium prices and quantity : Lawn mowing services are supplied by host of individuals in suburb of Westbrook. Demand and supply conditions in the perfectly competitive domestic for lawn mowing services are:

Reviews

Write a Review

Microeconomics Questions & Answers

  Determining deadweight loss

A small town is served by many competing supermarkets, which have constant marginal cost. Using the diagram of market for groceries, show the consumer surplus, producer surplus, and total surplus.

  Analyzing transactions-financial statements

Explain how this transaction would be recorded in your firm's financial statements. Additionally, your hospital has experienced negative levels of net income for the last five years. The total amount of accumulated deficits is $5 million

  Arc-approximation formula

Use arc-approximation formula to compute the price-elasticity of demand coefficient of the firm's product demand between the (quantity, price) points of (100, $20) and (300, $10).

  Mechanics of supply and demand

Why do you think it is important for managers to understand the mechanics of supply and demand both in the short run and in the long run?

  Determining two variables of price

The demand for new homes in the United States is often described as highly cyclical and very sensitive to housing prices and interest rates.

  Evaluate the mu in the utility functions

Evaluate the MU in the utility functions

  Equilibrium price-output combination

Office building maintenance plans call for stripping, waxing, and buffing of ceramic floor tiles. This work is often contracted out to office maintenance firms, and both technology and labor requirements are very basic.

  Production possibility frontier

Show the country's production possibility curve.

  Applied math on estimating price elasticity of demand

The marketing team for a restaurant wants to estimate the price elasticity of demand coefficient for its steak dinner. It priced its dinner at different price points in local restaurants to see how many would be sold at different prices.

  Difference-equilibrium price and equilibrium quantity

Write down the difference between Equilibrium price and Equilibrium quantity. What role does elasticity place?

  Disadvantages-forming strategic alliance

Describe the issues, challenges, or disadvantages to forming the strategic alliance (focus on supply chain). Provide an example that is not included in attached reference.

  Swot of the franchise

you must identify a franchise that is relatively new (less than 10 years old and fewer than 25 locations in Canada).  You must then evaluate the attractiveness of the franchise for an identified location.  The evaluation should include: Presentation ..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd