4) Suppose that you have the following demand curve. Q = 400 – 6P + 0.0051 Where Q = quantity demanded, %3D P = price, and | = average income. You know that the current market price is ZMW20 and average income is ZMW20,000 a) Calculate current demand. b) Calculate the price elasticity of demand. Calculate the income elasticity of demand.

4) Suppose that you have the following demand curve. Q = 400 – 6P + 0.0051 Where Q = quantity demanded, %3D P = price, and | = average income. You know that the current market price is ZMW20 and average income is ZMW20,000 a) Calculate current demand. b) Calculate the price elasticity of demand. Calculate the income elasticity of demand.

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter5: Price Elasticity Of Demand And Supply

Section: Chapter Questions

Problem 7SQP: Suppose a movie theater raises the price of popcorn 10 percent, but customers do not buy any less...

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