In the regional market for housing, demand for single detached homes depends on the price of the house, PH, consumer income, N, and the price of a related good, townhouses, Pr. The demand equation is Qda = 0.3N + 0.05PT -0.02PH. Initially, average consumer income is N= $50,000 and the average price of townhouses is $290,000. Making these substitutions, we get Qda = 29,500 - 0.02PH. This is our current demand equation. Suppose N= 50,000 and PH = 230,000. If the price of townhouses decreases from $290,000 to $255,000, what is the cross-price elasticity of demand for housing? a Click the icon to view the derivation of the current demand equation. .. The cross-price elasticity of demand for housing when N= 50,000, PH = 230,000, and the price of townhouses decreases from $290,000 to $255,000 is Eah = This is VSingle detached homes and townhouses are (Round to two decimal places as needed.) perfectly elastic. elastic. unit elastic. perfectly inelastic. inelastic.
In the regional market for housing, demand for single detached homes depends on the price of the house, PH, consumer income, N, and the price of a related good, townhouses, Pr. The demand equation is Qda = 0.3N + 0.05PT -0.02PH. Initially, average consumer income is N= $50,000 and the average price of townhouses is $290,000. Making these substitutions, we get Qda = 29,500 - 0.02PH. This is our current demand equation. Suppose N= 50,000 and PH = 230,000. If the price of townhouses decreases from $290,000 to $255,000, what is the cross-price elasticity of demand for housing? a Click the icon to view the derivation of the current demand equation. .. The cross-price elasticity of demand for housing when N= 50,000, PH = 230,000, and the price of townhouses decreases from $290,000 to $255,000 is Eah = This is VSingle detached homes and townhouses are (Round to two decimal places as needed.) perfectly elastic. elastic. unit elastic. perfectly inelastic. inelastic.
Chapter3: Market Demand And Supply
Section: Chapter Questions
Problem 11SQ
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Transcribed Image Text:In the regional market for housing, demand for single detached homes depends on the price of the house, PH, consumer income, N, and the price of a related good, townhouses, P-. The demand equation is Qda = 0.3N + 0.05PT -0.02PH.
Initially, average consumer income is N = $50,000 and the average price of townhouses is $290,000. Making these substitutions, we get Qda = 29,500 - 0.02PH. This is our current demand equation.
Suppose N = 50,000 and PH = 230,000. If the price of townhouses decreases from $290,000 to $255,000, what is the cross-price elasticity of demand for housing?
i Click the icon to view the derivation of the current demand equation.
The cross-price elasticity of demand for housing when N = 50,000, PH = 230,000, and the price of townhouses decreases from $290,000 to $255,000 is Ea b
This is
Single detached homes and townhouses are
(Round to two decimal places as needed.)
perfectly elastic.
elastic.
unit elastic.
perfectly inelastic.
inelastic.
Transcribed Image Text:In the regional market for housing, demand for single detached homes depends on the price of the house, PH, consumer income, N, and the price of a related good, townhouses, P-. The demand equation is Qda = 0.3N + 0.05PT -0.02PH.
Initially, average consumer income is N = $50,000 and the average price of townhouses is $290,000. Making these substitutions, we get Qda = 29,500 - 0.02PH. This is our current demand equation.
Suppose N = 50,000 and PH = 230,000. If the price of townhouses decreases from $290,000 to $255,000, what is the cross-price elasticity of demand for housing?
i Click the icon to view the derivation of the current demand equation.
The cross-price elasticity of demand for housing when N = 50,000, PH = 230,000, and the price of townhouses decreases from $290,000 to $255,000 is Ea b
This is
Single detached homes and townhouses are
ces as needed.)
substitutes.
complements.
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