Suppose that the quantity of steel demanded in France is given by Qk = 100 + 2Ps + 0.5Y + 0.2PA, where Qs is the quantity of steel demanded per year, Ps is the market price of steel, Y is real GDP in France, and PA is the market price of aluminum. In 2011, Ps = 10, Y = 40, and PA = 100. How much steel will be demanded in 2011? What is the price elasticity of demand, given market conditions in 2011?
Suppose that the quantity of steel demanded in France is given by Qk = 100 + 2Ps + 0.5Y + 0.2PA, where Qs is the quantity of steel demanded per year, Ps is the market price of steel, Y is real GDP in France, and PA is the market price of aluminum. In 2011, Ps = 10, Y = 40, and PA = 100. How much steel will be demanded in 2011? What is the price elasticity of demand, given market conditions in 2011?
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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Suppose that the quantity of steel demanded in France is given by Qk = 100 +
2Ps + 0.5Y + 0.2PA, where Qs is the quantity of steel demanded per year, Ps is
the market price of steel, Y is real GDP in France, and PA is the market price
of aluminum. In 2011, Ps = 10, Y = 40, and PA = 100. How much steel will be
demanded in 2011? What is the price elasticity of
conditions in 2011?
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