Find the cross-price elasticity of demand

Assignment Help Econometrics
Reference no: EM13212602

Given the following demand curve for good x: P_x=150+.1I-.2P_y-.5Qx , where P is the price for goods x and y respectively, I is income, and Q is quantity and the following information: I = $100, Q = 200, and the price of good y is $20. What is the relationship between goods x and y? Explain carefully. Using income as your primary factor, identify what category Good X falls into. Find the price elasticity of demand. Find the income elasticity of demand. Find the cross-price elasticity of demand.

Reference no: EM13212602

Questions Cloud

Find the maximum temperature in wall : The heat transfer convection coefficient between the wall and the fluid is 500 W/m2.K. Find the maximum temperature in wall.
Compute the ph value of nh3 solution : Calculate the pH value of solution (a) after 10.0 mL of NH3 solution have been added and (b) after 25.0 mL solution have been added (Ka for NH4+ = 5.6 x 10^(-10).)
What will be the final temperature in the tank : what will be the final temperature in the tank? how much work will be accomplished over the course of the entire process?
Determine the control resolution for this robot : The linear joint (Type L) of a certain industrial robot is actuated by a piston mechanism. The length of the joint wehn fully retracted is 600 mm and when fully extended is 1000 mm. If the robot's controller has an eight-bit storage capacity, dete..
Find the cross-price elasticity of demand : What is the relationship between goods x and y? Explain carefully. Using income as your primary factor, identify what category Good X falls into. Find the price elasticity of demand. Find the income elasticity of demand. Find the cross-price elast..
Determine the net electric output : Water enters a hydraulic turbine through a 30-cm-dia pipe. The pressure drop in the turbine is measured by a mercury manometer to be 1.2 m. For a combined turbine-generator efficiency of 83%, determine the net electric output. Disregard the effect..
Explain what is the molar mass of the enzyme : Assuming the density of the solution is 1.00 grams/mL, what is the molar mass of the enzyme?
Discuss the trade-off of risk : Identify a "risky" and a "safe" investment and provide rationale to justify your choices. Also, discuss the trade-off of risk and reward between your two investments.
When unemployment is below its steady state value : unemployment evolved according to ?U = sE - fU where E is the level of employment and that the steady state unemployment rate was (U/L) = s/(s+f). Show that when unemployment is above its steady state value it tends to fall.

Reviews

Write a Review

Econometrics Questions & Answers

  Find the optimal pigouvian tax

Assume that a regulator assigns property rights on the externality, i.e. right to make noise or to enjoy an environment free of noise. Show that by agreeing on the airport traffic and on compensations, the two firms reaches the efficient outcome (..

  Which alternative is most desirable from the cost viewpoint

The design of a system is to be pursued from one of the available alternatives. Each alternative has a life cycle cost associated with an expected future. The costs for the corresponding futures are given in the following table (in millions of dol..

  What effect will the have on checkable deposits

If you decide to hold $100 less cash than usual and therefore deposited $100 in cash in the bank, what effect will this have on checkable deposits in the banking system if the rest of the public keeps its holding of currency constant

  What is jesses monthly economic profit

Jesse sells 400 candles per month at an average price of $5 per candle. Costs of supplies to produce and sell the candles are $500. Rather than producing and selling candles, Jesse could be working at a second job earning $800 per month.

  What is the airlines profit maximizing fare

as the exclusive carrier on a local airline route, a regional airline must determine the number of flights it will provide and the fare it will charge. Taking into account operating and fuel costs, airport changes, and so on, the estimated cost pe..

  How much time would it take the two to complete the project

Gary and Diane must prepare a presentation for their marketing class. As part of their presentation, they must do a series of calculations and prepare 50 PowerPoint slides. It would take Gary 10 hours to do the required calculation and 10 hours to..

  What is the capitalized worth of the system

A city is spending $20 million on a new sewage system. The expected life of the system is 40 years, and it will have no market value at the end of its life. Operating and maintenance expenses for the system are projected to average $0.6 million pe..

  Calculate the cost of the equity capital to the firm

The MacBurger Company a chain of fast food restaurants, expects to earn $200 million after taxes for the current year. The company has a policy of paying out half of its net after-tax income to the holders of the company's 100 million shares of c..

  Why regression model has been proposed to predict sales

the following regression model has been proposed to predict sales at a computer store. y = 50 - 3x1 + 20x2 + 10x3 where x1 = competitor's previous day's sales (in $1000s), x2 = population within 1 mile (in 1,000s) x3 1.) if radio advertising was u..

  Calculate the total revenue for each level of demand

Using the midpoints formula presented in the text, calculate the elasticity coefficient for each price level, starting with the coefficient for the $4 to $6 level. For each coefficient, indicate what type of elasticity is indicated, elastic demand..

  What amount will total lendable deposits in banking system

Joe has never trusted banks and always kept his money in cash. Joe pulls out his money jar, discovers that it has $20,000 in it, and decides it is unsafe to keep that much cash. Joe stops at the Local National Bank the following day, opens a check..

  Calculate the npv and the irr

Your firm has an opertunity to make an investment of $50,000. Its cost of capital is 12 percent. It expects after tax cash flow for the next 5 years to be the following: Yr1 - 10,000 Yr2 - 20,000 Yr3 - 30,000 Yr4 - 20,000 Yr5 - 5,000

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