Calculate current quantity demanded. calculate the price, Ask an Expert

Economics

Suppose that you estimated the following demand curve.

Q = 400 - 6P + .005I

Q represents quantity demanded, P represents price and I represents average income. You know that the current market price is $20 and average income is $20,000

(a) find out current quantity demanded.

(b) find out the price elasticity of demand using the point elasticity formula. Please show your calculations

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M950632

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