The demand-function for a given consumer good (A) is given as: QA = 1400 – 4PA – 2PR – 0.0051 - - - В Where PA = 200 Dkk is the price for good A, PB = 50 Dkk is the price for good B, and I = 20,000 Dkk is the disposable income. || Question 2.1 Provide examples of three more factors that influence demand of consumer good A, besides the ones presented in the equation above. Briefly explain why and how they would influence demand. Question 2.2. Find price point elasticity for good A and provide an economic interpretation. Question 2.3. Find cross price elasticity between goods A and B and provide an economic interpretation.

The demand-function for a given consumer good (A) is given as: QA = 1400 – 4PA – 2PR – 0.0051 - - - В Where PA = 200 Dkk is the price for good A, PB = 50 Dkk is the price for good B, and I = 20,000 Dkk is the disposable income. || Question 2.1 Provide examples of three more factors that influence demand of consumer good A, besides the ones presented in the equation above. Briefly explain why and how they would influence demand. Question 2.2. Find price point elasticity for good A and provide an economic interpretation. Question 2.3. Find cross price elasticity between goods A and B and provide an economic interpretation.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter4: Estimating Demand

Section: Chapter Questions

Problem 6E

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