Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Microeconomics Expert

The general linear demand for good X is estimated to be

Q= 250,000 - 500P - 1.50M - 240PR

Where P is the price of good X, M is average income of consumers who buy good X, and PR is the price of related good R. The values of P, M, and PR are expected to be $200, $60,000 and $100, respectively. Use these values at this point on demand to make the following computations.

a. Compute the quantity of good X demanded for the given values of P, M, and PR .

b. find out the price elasticity of demand Ep. at this point on the demand for X, is demand elastic, inelastic or unitary elastic? How would increasing the price of X affect total revenue? describe.

c. find out the income of elasticity of demand EM . Is good X normal or inferior? describe how a 4 percent increase in income would affect demand for X, all other factors affecting the demand for X remaining the same.

d. find out the cross-price elasticity.EXR Are the goods X and R substitutes or complements? describe how a 5 percent decrease in the price of related good R would affect demand for X, all other factors affecting the demand for X remaining the same. The estimated market demand for good X is:

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M941799

Have any Question? 


Related Questions in Microeconomics

Economics assignmentassignment is due tomorrow sunday

Economics assignment ASSIGNMENT IS DUE TOMORROW SUNDAY 09/18/16 AT 10AM APA NEEDED FOR TOM MUTUNGA ONLYYYYYYYYYYYYYYY Option Identify at least two professional organizations in your chosen field. Research the organizatio ...

Principles of economics1 which statement is truea today

Principles of Economics 1. Which statement is true? A) Today more workers in the U.S. are members of labor unions than any time in our history. B) Today labor unions are weaker than any time in the last 100 years. C) No ...

Social institutions assignmentpreparation review the

Social Institutions Assignment Preparation: Review the module five reading/lectures Homework Activity: Consider the ways in which the major social institutions explored in this module affect the process of socialization. ...

Microeconomics - price floorassignmentin a perfectly

Microeconomics - Price Floor Assignment In a perfectly competitive market, the equilibrium price and quantity represent the most efficient operation of that market. Optimum efficiency means that sellers cannot be made be ...

Long-term investment and cost-benefit analysis please

Long-Term Investment and Cost-Benefit Analysis" Please respond to the following: From the scenario for Katrina's Candies, suggest one method in which Herb could use a cost-benefit analysis to argue for or against an expa ...

Based upon your reading of the materials giving and your

Based upon your reading of the materials giving, and your own additional research, prepare an essay discussing the use of infectious disease as a weapon of international terror. You should address the following questions ...

Answer these two questionthese is 2 econ question you need

Answer these two question These is 2 econ question, you need answer these by reading the article . you need give me the answer in 1 hour 1. Explain how settled agriculture led to civilization (meaning economic specializa ...

Case analysis instructionsnoteyou will need to get approval

Case Analysis Instructions NOTE: YOU WILL NEED TO GET APPROVAL FOR THE CASE YOU WISH TO ANALYZE. YOU ARE TO UPLOAD INFORMATION ON YOUR PROPOSED CASE TO THE "SUBMISSIONS" FOLDER ON THE COURSE HOMEPAGE BY SUNDAY, SEPTEMBER ...

Problemdescribe some interaction your company has with

Problem Describe some interaction your company has with another entity (firms producing complementary or substitute products, upstream suppliers, or down-stream customers), or between internal divisions within your firm ...

These questions are about the usa industrialization and

These questions are about the USA Industrialization and Economic Development. At least 200 words for each question! 1. What is meant by the term "development" inneo-classic economics? How might your answer to this questi ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate