The demand equation for a good is given by the equation: Q=520- 20P + 0.6Y + 2.9C (a) Find the price, income, and cross-price elasticity of demand when, P = 10, Y = 700 and C = 21 (b). Discuss the effect on demand if there were a 20% increase in price (c) Discuss the effect on demand if there were a 50% decrease in income
The demand equation for a good is given by the equation: Q=520- 20P + 0.6Y + 2.9C (a) Find the price, income, and cross-price elasticity of demand when, P = 10, Y = 700 and C = 21 (b). Discuss the effect on demand if there were a 20% increase in price (c) Discuss the effect on demand if there were a 50% decrease in income
Principles of Microeconomics
7th Edition
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter5: Elastic And Its Application
Section: Chapter Questions
Problem 6PA: Suppose that your demand schedule for DVDs is as follows: Price Quantity Demanded (income = 10,000)...
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