Income-elasticity of demand coefficient

Assignment Help Microeconomics

Reference no: EM1367380

a) Use the arc-approximation formula to calculate the price-elasticity of demand coefficient of a firm's product demand between the (quantity,price) points of (50, $10) and (54, $8).

b) Calculate the cross-price elasticity of demand coefficient of a firm's product X, given that a 10% increase in the price of its close substitute, product Y, causes the quantity demand of
product X to increase by 15%.

c) Calculate the income-elasticity of demand coefficient for a product for which a 5% increase in consumers' income will increase the quantity demanded by 4%.

Reference no: EM1367380

Questions Cloud

Determine the effects on the exchange rate : Using demand and supply analysis to assist you, determine the effects on the exchange rate between the British pound and the Japanese yen from:

Illustrate what can you say about cost elasticity of demand : illustrate what can you say about cost elasticity of demand for DVD players. Will cost reduction necessarily lead to an increase in profits for DVD player manufactures.

The absolute and relative sizes of the public debt : Explain How do economists distinguish between the absolute and relative sizes of the public debt? Why is the distinction important?

Invoke method to tell air conditioner on or not : Suppose there is a reference variable myAC to object of this class, which has already been created. Using reference variable, invoke method to tell air conditioner object to turn on.

Income-elasticity of demand coefficient : Use the arc-approximation formula to calculate the price-elasticity of demand coefficient of a firm's product demand between the (quantity,price) points of (50, $10) and (54, $8).

Why wouldcost of suvs lower than equilibrium cost : Why would equilibrium cost of SUVs such as Ford Explorers and Chevy Trailblazers be lower than equilibrium cost of subcompacts.

Determine the value of the computer in the gdp : The given table lists the stages needed in the production of a personal computer. Determine the value of the computer in the GDP?

What is the potential difference that stopped electron : A spherical shell 28 in diameter carries a total charge of 81 distributed uniformly over its surface. A 4 point charge is located at the center of the shell. What is the electric field strength 8 from the center.

Barriers or challenges to research utilization : Describe some of the barriers or challenges to research utilization that exists in your work setting or practice.

User Account

All Pages