Determining the price elasticity of demand

Assignment Help Business Economics

Reference no: EM132080137

The demand curve for a product is given by QXd = 1,200 - 3PX - 0.1PZ where Pz = $300.

a. What is the own price elasticity of demand when Px = $140? Is demand elastic or inelastic at this price? What would happen to the firmï¿½s revenue if it decided to charge a price below $140?

Own price elasticity:

If the firm prices below $140, revenue will: (increase, decrease or not change)

b. What is the own price elasticity of demand when P_x = $240? Is demand elastic or inelastic at this price? What would happen to the firmï¿½s revenue if it decided to charge a price above $240?

Own price elasticity:

If the firm prices above $240, revenue will:

c. What is the cross-price elasticity of demand between good X and good Z when P_x = $140? Are goods X and Zsubstitutes or complements?

Cross-price elasticity:

Reference no: EM132080137

Questions Cloud

Assign a bit and b bit to the counter bits : Assign a (bit 1) and b (bit 0) to the counter bits so that all possible inputs are tested increments the counter using a process use.

Taxes to close a recessionary or inflationary gap : Discretionary fiscal policy refers to changes in: government spending or taxes to close a recessionary or inflationary gap.

Experiences economies of scale or diseconomies of scale : Indicate whether each firm experiences economies of scale or diseconomies of scale.

Write a java prohram to implement a method : Write a java prohram to Implement a method inPlaceInsertionSort() that takes an array of Clocks as an input.

Determining the price elasticity of demand : The demand curve for a product is given by QXd = 1,200 - 3PX - 0.1PZ where Pz = $300.

Cover the details of the design : Teesside University - A new product design has been recently completed. As a design engineer responsible for the design, you are required to deliver a report

Problem regarding the cost-benefit analysis : a) Compare the real worth, rather than the market values, of various goods and services. b) Compare the relative desirability of alternative distributions.

Create a linked list that is a palindrome : Create a linked list that is a Palindrome, and call the isPalindrome method. Test to ensure it returns True.

Demand and supply curves for a good : With this type of externality, in the absence of government intervention, the market equilibrium quantity produced will be (Greather/less) than the socially

User Account

All Pages