Reference no: EM132373545
A firm's demand equation is given by: Q = 60 - 60P + 2Y, where Q is quantity, P is price, and Y is income. If price increases by $2.5 and income increases by $80, then quantity demanded will change by ___ units.
Assume that Insite Corporation produces advanced analytic software for computer simulations called Model-It. Based on an analysis of product sales over a two-year period, Insite's marketing department estimates the demand for Model-It to be QM = 1,200 - 8PM + 5PS, where QM denotes units sold of Model-It software, PM denotes Model-It's price, and PS denotes the price of a best-selling statistical software package (with both prices in dollars). Currently, PM = $200 and PS = $300. What is the predicted quantity demand for Model-It software?
The initial price for an item is $5.00, and the quantity demanded is 400 units. When the price is raised to $5.25, the quantity demanded falls to 307 units. The absolute value of the point elasticity of demand is _____.
A product's point price elasticity has been estimated at -1.5. At the initial price of $20, the quantity demanded was 10 units. If the firm cuts the price to $15.5, quantity demanded and sold is expected to increase by _____ percent.
Hint: Round your answer to two decimal places. The answer is a percent between 0 -100 where you would write 10% and not .10.
A firm's demand curve is estimated to be Q = 400 - 4.1P, where Q is quantity and P is the price of the good. At P = $20, the point elasticity of demand is _____.