Question

All variables refer to the supplier of good X, except PY (= Price other goods).
Demand: Q= 180 - 5P + 10PY + 0.41
when P= 6, PY =8, I(= income) = 2000
> Calculate e.
- Calculate Cross Price elasticity.
- Calculate Income elasticity.
- Characterize good X

Answer 1

Answer:

All variables refer to the supplier of good X, except PY (= Price other goods).

Demand: Q= 180 - 5P + 10PY + 0.41

when P= 6, PY =8, I(= income) = 2000

> Calculate e.

- Calculate Cross Price elasticity.

- Calculate Income elasticity.

- Characterize good X