What is price elasticity and income elasticity

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Reference no: EM13770620

The equation for a demand curve has been estimated to be Q=100 - 10P + 0.5Y

Where Q is quantity, P is price, and Y is income. Assume P=7 and Q=50.

A) At a price of 7, what is price elasticity?

B) At an income level of 50, what is income elasticity?

C) Now assume income is 70. What is the price elasticity at P=8?

(Use the point formula)

Reference no: EM13770620

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