What is income elasticity of demand for the firms product

Reference no: EM13698174

The demand equation for a company's product it Q = 500 - 3P + 2Pi + 0.1I where Q is the quantity demanded of its product, Pi is the price of its rival's product, and I is the per capita disposable income (in dollars). At present, p = $10, Pi = $20, and I - $6,000. What is the price elasticity of demand for the firm's product? What is the income elasticity of demand for the firm's product?

Reference no: EM13698174

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