Suppose a linear demand function is estimated for good

Assignment Help Business Economics

Reference no: EM131000930

Suppose a linear demand function is estimated for good x as, Qd = 100 – 4*Px + 6*Py + M. where Px = $4, Py = $2, and M =10. M is the average income of consumers, measured in thousands of dollars. What is the price elasticity of good x?

Reference no: EM131000930

Questions Cloud

Suppose a linear demand function is estimated for good : Suppose a linear demand function is estimated for good x as, Qd = 100 – 4*Px + 6*Py + M. where Px = $4, Py = $2, and M =10. M is the average income of consumers, measured in thousands of dollars. Suppose the end of the recession has increased the ave..

Determine whether the problem involves constrained : For each of the following decision-making problems, determine whether the problem involves constrained or unconstrained optimization; what the objective function is and, for each constrained problem, what the constraint is; and what the choice variab..

True when a firm acts as a price taker : Which of the followings is not true when a firm acts as a price taker. Tom decided to spend $100 on CD and cassette tapes. The price of CD is $10, and the price of cassette tape is $5. Which of the followings is true? Which of the followings is not t..

Find variable cost-average variable cost and fixed cost : Suppose the cost function is TC(q) = 3ln(q) − 1.5q^2 + 0.25q^3 − 235. Find Variable cost, Average Variable Cost, Fixed Cost, Average Fixed Cost, Marginal Cost when q=10.

What does it mean to experience privilege : Drawing from lecture, The Color of Fear, and McIntosh's article, what does it mean to experience privilege? Are the "privileged" always aware of their privilege? Can you provide an example of privilege, in terms of race, class, gender, sexuality, ..

Invested each year for employer sponsored health care : An engineering firm estimates that its cost for employer sponsored health insurance will be $750,000 next year and increase at 11% per year for the next 8 years. The company CFO wants to budget a uniform amount each year to cover these costs. If the ..

What specific racial tension arose from the goldrush : Describe the main conflict between the sioux and the U.S. What was the culmination of these issues? What was the fate of the sioux? What is the turner thesis? How do differing theories oppose it? Describe how certain tribe’s resisted and ensured thei..

Government reduces the current tax burden of households : Suppose the government reduces the current tax burden of households today by sending a tax rebate by mail. Assume that the government pays for this tax rebate by borrowing today but will have to increase taxes in the future. What happens to desired p..

User Account

All Pages