Natural logarithmic function

Assignment Help Business Economics

Reference no: EM13896597

The given is natural logarithmic function. Ln(Q)=-0.23-0.34ln(P)+0.45ln(P2)+1.33ln(I)

Hint: Ln y= x ln a

(d/dx)ln y=(d/dx)x ln a= ln a (d/dx)x = ln a(1)= ln a

Where: P is price of raspberries P2 is price of blackberry I is income Q is quantity

a. What is the price elasticity of demand for raspberries?

b. What is income elasticity of demand?

c. What is cross-price elasticity of demand?

d. Is demand elastic for each good (raspberries, blackberry, and income)? Why? Please, explain.

Reference no: EM13896597

Questions Cloud

Experienced diminishing marginal utility : Describe when you have experienced diminishing marginal utility. Also discuss opportunity costs you have had to pay in order to attend school

What is the firms profit-maximizing markup : The demand function for a firm’s product is Q = P!3. The firm’s marginal cost of production is constant at MC(Q) = 12. Using your answers to (a) and (b), what is the firm’s profit-maximizing markup? (Justify your answer carefully. Do not forget about..

Explain why market recognizes first effect-but not second : Suppose the education an individual acquires makes her a more productive member of the workforce and also decreases the likelihood of her supporting dictator. Explain why market recognizes the first effect, but not the second?

Carolina christmas tree corporations total revenues : The Carolina Christmas Tree Corporation grows and sells 500 Christmas trees. The average cost of production per tree is $50. Each tree sells for a price of $65. The Carolina Christmas Tree Corporation’s total revenues are

Natural logarithmic function : The given is natural logarithmic function. Ln(Q)=-0.23-0.34ln(P)+0.45ln(P2)+1.33ln(I). What is the price elasticity of demand for raspberries? What is income elasticity of demand?

Observations collected in regression study on two variables : Given are five observations collected in a regression study on two variables.

Number of television broadcasts : Let G be the number of television broadcasts each day. Consider 3 individuals with preferences UA =G/4 UB =2–G^(3/4) UC =G–(G^2)/2 a) Show that the 3 consumers have single-peaked preferences

Production function-labour-days with rental rate on machine : Primo Salt, Inc., manufactures salt, according to the following production function: Q(K, L) = 2L 1/2K 1/3 , where output Q is measured in tonnes, L in labour-days, and K in machine-days. Give the wage rate w (in $/labour-day), the number of machine-..

Production function for hogwarts remover-anti-magic potion : The production function for Hogwarts Remover, an anti-magic potion, has the form Q = K 0.5L 0.5 , where Q is in bottles per period and K and L are in machine-days and labour-days per period, respectively. a. Graph the unit isoquant (Q = 1) and the is..

User Account

All Pages