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28 Sep 2019
Assume that the aggregate demand equation for a good has been estimated to be Q = 50 â 2P + PZ + 4Y. Q is the quantity demanded, P is the price of the good in dollars per unit, PZ is the price of another good in dollars per unit, and Y is average consumer income in thousands of dollars (that is, when Y equals 10, the average consumer has $10,000 in income).
a. What is the price elasticity of demand when P equals 10, PZ is 20, and Y is 20?
b. What is the cross price elasticity due to a change in the price of good Z when PZ equals 20, P equals 10, and Y is 20?
c. What is the income elasticity of demand when P equals 10, PZ is 20, and Y is 20?
Assume that the aggregate demand equation for a good has been estimated to be Q = 50 â 2P + PZ + 4Y. Q is the quantity demanded, P is the price of the good in dollars per unit, PZ is the price of another good in dollars per unit, and Y is average consumer income in thousands of dollars (that is, when Y equals 10, the average consumer has $10,000 in income).
a. What is the price elasticity of demand when P equals 10, PZ is 20, and Y is 20?
b. What is the cross price elasticity due to a change in the price of good Z when PZ equals 20, P equals 10, and Y is 20?
c. What is the income elasticity of demand when P equals 10, PZ is 20, and Y is 20?
larryrambo777Lv10
10 Mar 2023
Retselisitsoe PokothoaneLv10
28 Sep 2019
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