Q = 1,200 – 9.5p + 16.2p, +0.2Y, ere Q is the quantity of coconut oil demanded in thousands of metric tons per year, p is the price of coconut oil in cents per pound, p, is the price of Im oil in cents per pound, and Y is the income of consumers. Assume that p is initially 65 cents per pound, p, is 23 cents per pound, and Q is 1,300 ousand metric tons per year. Calculate the price elasticity of demand for coconut oil and the cross-price elasticity of demand (with respect to the price palm oil). e price elasticity of demand is (Enter your response rounded to three decimal places and include a minus sign.)

Q = 1,200 – 9.5p + 16.2p, +0.2Y, ere Q is the quantity of coconut oil demanded in thousands of metric tons per year, p is the price of coconut oil in cents per pound, p, is the price of Im oil in cents per pound, and Y is the income of consumers. Assume that p is initially 65 cents per pound, p, is 23 cents per pound, and Q is 1,300 ousand metric tons per year. Calculate the price elasticity of demand for coconut oil and the cross-price elasticity of demand (with respect to the price palm oil). e price elasticity of demand is (Enter your response rounded to three decimal places and include a minus sign.)

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter5: Elasticity Of Demand And Supply

Section: Chapter Questions

Problem 1.1P: (Calculating Price Elasticity of Demand) Suppose that 50 units of a good are demanded at a price of...

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