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Multivariate demand function for smooth sailing sailboats

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Reference no: EM132285580

All questions utilize the multivariate demand function for Smooth Sailing sailboats in C6 on text page 83, initially with:

PX = $9500    PY = $10000  I = $15000     A = $170000  W = 160

This function is:

Qs = 89830 -40PS +20PX +15PY +2I +.001A +10W

1. Use the above to calculate the arc price elasticity of demand between PS = $9000 and PS = $8000. The arc elasticity formula is:

Reference no: EM132285580

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