Is demand elastic or inelastic at this price

Assignment Help Econometrics

Reference no: EM13188752

The demand curve for a product is given by Qdx= 1,000 -2Px + .02Pz' where Pz = $400.

a. What is the own price elasticity of demand when Px = $154? Is demand elastic or inelastic at this price? What would happen to the firm's revenue if it decided to charge a price below $154?

b. What is the own price elasticity of demand when Px = $354? Is demand elastic or inelastic at this price? What would happen to the firm's revenue if it decided to charge a price above $354?

c. What is the cross-price elasticity of demand between good X and good Z when, Px = $154? Are goods X and Z substitutes or complements?

Reference no: EM13188752

Questions Cloud

What impact does the behavior have on the saving rate : According to the life-cycle hypothesis, what is the typical pattern of saving for an individual over his or her lifetime What impact does this behavior have on an individual's lifetime consumption pattern What impact does the behavior have on the ..

What are the length and the width of the pool : The width of a rectangular swimming pool is 10 feet less than the length of the swimming pool. The surface area of the pool is 600 square feet. What are the length and the width of the pool. You must know the formula for area of a rectangle in ord..

Find the angular velocity of the wheels of the car : travelling at a rate of 65.5 km/h and its tires that have a radius of 33.6 cm. Find the angular velocity of the wheels of the car.

What is the percent of annual life cycle cost : the operation and maintatenance expenses 450 per year additionally , the hourly fuel expense for running the turbine is 7.5 dollar per hour and the turbine expected to operate 3000 hours eaach year . the cost of dismantling and disposing the turbi..

Is demand elastic or inelastic at this price : What is the own price elasticity of demand when Px = $154? Is demand elastic or inelastic at this price? What would happen to the firm's revenue if it decided to charge a price below $154.What is the cross-price elasticity of demand between good X ..

Write a method that finds the average age of the students : Write a method that finds the average age of the students stored in the data structure and some Java code that could be used in a test program to display the value returned by the method on the console or command prompt.

How would you go about resolving the issue : For a developing country to grow it needs capital. The major source of capital in most countries is domestic saving but the goal of stimulating domestic saving is usually in conflict with government policies aimed at reducing inequality in redistr..

Explain the effects in the markets for corn : ethanol is a motor fuel manufactured from corn, barley, or wheat, and it can be used to power the engines of many autos and trucks. suppose that the government decided to probide a large per-unit subsidy to ethanol producers.

Functions of standard and statistical calculators : Write a windows application in Visual Basic to perform functions of standard and statistical calculators.

User Account

All Pages