4. d & e 4. Use the market demand on #3 and identify the range of price that will give a/anA. elastic demandB. inelastic demandC. unitary elastic demandD. perfectly elastic demandE. perfectly inelastic demand Assume equations 1 and 2 below were estimated from the data gathered that will representthe demand and supply functions respectively of an individual buyer and seller respectivelyfor product X.Eq. 1Eq. 2Qdx = 65,000 – 11.25Px + 15P, – 3.751 + 7.5AQsx = 7,500 + 14.25Px – 15P, – 3.75Cwhere Px – price of product X; Py – price of product Y; I – average consumer's income; Aadvertising expenditure; Pz – price of product Z; and C – cost of production.Use the following additional information: the price of a related product, Y, is P41.25; theaverage consumer's income is P12,000; advertising expenditure is P2,500; the price of productZ is P90; and the cost of production is P1,200. There are 30 identical buyers and 50 identicalsellers in the market for product X.

Introduction demand and supply function has given as Q dx = 65,000 - 11.25 Px + 15 Py - 3.75I + 7.5…

Assume equations 1 and 2 below were estimated from the data gathered that will represent the demand and supply functions respectively of an individual buyer and seller respectively For product X. Qdx = 65,000 – 11.25P, + 15P, – 3.751 + 7.5A Eq. 1 Qsx = 7,500 + 14.25Pg – 15P, – 3.75C Eq. 2 where Px – price of product X; Py – price of product Y; I – average consumer's income; A advertising expenditure; Pz – price of product Z; and C – cost of production. Use the following additional information: the price of a related product, Y, is P41.25; the average consumer's income is P12,000; advertising expenditure is P2,500; the price of product Z is P90; and the cost of production is P1,200. There are 30 identical buyers and 50 identical

Assume equations 1 and 2 below were estimated from the data gathered that will represent the demand and supply functions respectively of an individual buyer and seller respectively For product X. Qdx = 65,000 – 11.25P, + 15P, – 3.751 + 7.5A Eq. 1 Qsx = 7,500 + 14.25Pg – 15P, – 3.75C Eq. 2 where Px – price of product X; Py – price of product Y; I – average consumer's income; A advertising expenditure; Pz – price of product Z; and C – cost of production. Use the following additional information: the price of a related product, Y, is P41.25; the average consumer's income is P12,000; advertising expenditure is P2,500; the price of product Z is P90; and the cost of production is P1,200. There are 30 identical buyers and 50 identical

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter5: Elasticity

Section: Chapter Questions

Problem 1SCQ: From the data in Table 5.5 about demand for smart phones, calculate the price elasticity of demand...

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