■ Suppose Dp is the demand curve for plantain, and it is given as; Dp = 5000-3Pp+5Py-Pc +0.1 Y ■ where Pp is price of plantain, Py is price of yam, Pc is price of cassava, Y is income of the consumer. ■ Given Pp = 200, Py = 300, Pc = 500 and Y = 5000 calculate 1 Price elasticity of demand 2 Cross-Price elasticity of demand 3 Income elasticity of demand ■ From your estimations, what inferences can be drawn about the nature of plantain to the consumer.

■ Suppose Dp is the demand curve for plantain, and it is given as; Dp = 5000-3Pp+5Py-Pc +0.1 Y ■ where Pp is price of plantain, Py is price of yam, Pc is price of cassava, Y is income of the consumer. ■ Given Pp = 200, Py = 300, Pc = 500 and Y = 5000 calculate 1 Price elasticity of demand 2 Cross-Price elasticity of demand 3 Income elasticity of demand ■ From your estimations, what inferences can be drawn about the nature of plantain to the consumer.

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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