Suppose that you have the following demand curve. (20 points) Q = 520 -7P + 0.003I Q Represents quantity demanded, P represents price and I represent average income. You know that the current market price is P20 and average income is P18,500 Please answer the following: Calculate the price elasticity of demand. Calculate the income elasticity of demand.

Suppose that you have the following demand curve. (20 points) Q = 520 -7P + 0.003I Q Represents quantity demanded, P represents price and I represent average income. You know that the current market price is P20 and average income is P18,500 Please answer the following: Calculate the price elasticity of demand. Calculate the income elasticity of demand.

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter5: Elasticity Of Demand And Supply

Section: Chapter Questions

Problem 8QFR

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