EBK MICROECONOMICS
2nd Edition
ISBN: 9780134458496
Author: List
Publisher: VST
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Question
Chapter 4, Problem 13P
(a)
To determine
The demand curve for the equation:
(b)
To determine
The demand schedule for the equation
(c)
To determine
Demand curve of buyer who is willing to pay any price for one unit.
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Students have asked these similar questions
If price of a Complement (commodity y) falls, what happens to demand of commodity x
In the regional market for housing, demand for single detached homes depends on the price of the house, PH, consumer income, N, and the price of a related good, townhouses, P-. The demand equation is Qd = 0.3N + 0.08PT - 0.02PH. Initially,
average consumer income is N= $50,000 and the average price of townhouses is $315,000. Making these substitutions, we get Qd = 40,200 – 0.02PH: This is our current demand equation.
Suppose income changes from $50,000 to $60,000. What is the income elasticity of demand for housing when the price is $220,000?
Click the icon to view the derivation of the current demand equation.
The income elasticity of demand for housing when the price is $220,000 and income changes from $50,000 to $60,000 is EN = |. This is
Housing is
good.
(Round to two decimal places as needed.)
perfectly inelastic.
perfectly elastic.
inelastic.
elastic.
unit elastic.
In the regional market for housing, demand for single detached homes depends on the price of the house, PH, consumer income, N, and the price of a related good, townhouses, P-. The demand equation is Qda = 0.3N + 0.05PT -0.02PH.
Initially, average consumer income is N = $50,000 and the average price of townhouses is $290,000. Making these substitutions, we get Qda = 29,500 - 0.02PH. This is our current demand equation.
Suppose N = 50,000 and PH = 230,000. If the price of townhouses decreases from $290,000 to $255,000, what is the cross-price elasticity of demand for housing?
i Click the icon to view the derivation of the current demand equation.
The cross-price elasticity of demand for housing when N = 50,000, PH = 230,000, and the price of townhouses decreases from $290,000 to $255,000 is Ea b
This is
Single detached homes and townhouses are
(Round to two decimal places as needed.)
perfectly elastic.
elastic.
unit elastic.
perfectly inelastic.
inelastic.
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