Inverse demand curve for a new laptop computer

Assignment Help Business Management
Reference no: EM132240862

Suppose that the inverse demand curve for a new laptop computer can be expressed as P = -aQ +bI, where price (P) is in dollars, quantity (Q) is in number of laptops in millions, and income (I) is in dollars. Solve for "-a" if the price elasticity of demand is -2.0, the income elasticity is +1.5 and initial conditions are such that P = 500, Q = 2, I = 50000.

Reference no: EM132240862

Questions Cloud

Discuss the fundamental actions : Discuss the fundamental actions that the leadership of the selected country is - or is not - taking to improve the living standards of its people.
Set up the accounting profit equation : What is their opportunity cost if they decide to operate this business? Set up the accounting profit equation.
What are the four phases of the business cycle : Why does the business cycle affect output and employment in capital goods industries and consumer durable goods industries more severely
Days to process customer complaints : What are the sample point estimates for the mean and standard deviation for the time it takes to resolve a customer complaint?
Inverse demand curve for a new laptop computer : Suppose that the inverse demand curve for a new laptop computer can be expressed as P = -aQ +bI, where price (P) is in dollars
Demand for baby shoes in a small town : Suppose the demand for baby shoes in a small town is described by the following equation: Q = 50 - aP, where Q is the quantity of baby shoes demanded
Evaluate public health for its historical significance : Evaluate public health for its historical and current significance in protecting and promoting individual, community, and population health
Equilibrium gdp and equilibrium price level : Assuming that the AS curve is horizontal, how will an increase in productivity affect equilibrium GDP and equilibrium price level?
How do life events shape rielys self-image : Choose your favorite optimist and pessimist from two of the following characters: Mom, Dad, Joy, Sadness, Riely, Bing-Bong, Fear, and Anger.

Reviews

Write a Review

Business Management Questions & Answers

  Define the role that insurance plays

Define the role that insurance plays in the risk portfolio of the new business.

  Relationship between physical and organization structure

Which changes would you make in running OrgCon for 1990?-  What were the major changes?- What is the relationship between the physical structure and organizational structure?

  Decision making based on critical thinking and emotion

What kinds of questions would you use as you talk with him/her to help him/her make the decision based on critical thinking rather than emotion?

  How would you approach working together to make a decision

How would you approach working together to make an ethical decision? What strengths of each style should be considered during the decision-making process?

  Analyze facts that you think would make country a good place

Your assignment is to point out and analyze the facts or statistics that you think would make this country a good place to build and staff your factory.

  Behavioural based safety facilitator for your company

You are the Behavioural Based Safety facilitator for your company. You are required to ascertain the safety culture level of your organization to determine its readiness to implement a Behavioural Based Safety process.

  Identify the basic elements of the technology

Identify the advantages and disadvantages of taking your small business online by performing a SWOT analysis. Include 2-4 items in each category.

  Spinal cord injury in the lumbar region

1. Following a severe spinal cord injury in the lumbar region, the voluntary muscles of the legs and hips will be paralyzed. Describe the effects of paralysis on the skeleton.

  Explain however mountain mist needs to spend no more

explain however, Mountain Mist needs to spend no more than $70,000 on TV spots also no more than $50,000 on magazine ads. Mountain Mist earns a profit of $0.05 on each can it sells.

  Analyze the types of challenges companies face

Analyze the types of challenges companies face in managing their channels and determine which is the most difficult to address. Explain your rationale.

  Aggregate demand and aggregate supply shocks

Why do new classical economists believe the economy will "self-correct" from aggregate demand and aggregate supply shocks? Give an example.

  Describe dynamics of competition using porters forces model

Describe the dynamics of competition using Porter's Five Forces Model of Competition. Correctly assess the dynamics of competition.

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