Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Business Economics Expert

Given the following linear market demand for good 1:

Q1=1000+0.5M-400P1+200P2

P1=10

P2=5

M=20000

a) calculate the cross-price elasticity of demand.

b) calculate the income elasticity of demand.

c) are the two goods compliments or substitues?

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M92203630

Have any Question?


Related Questions in Business Economics

A random sample of 79 eighth grade students score on a

A random sample of 79 eighth grade students score on a national mathematics assessment test has a mean score of 263. This test result prompts a state school administrator to declare that the mean score for the states eig ...

Gregs hardware has determined the following demand and

Greg's Hardware has determined the following demand and supply equations for nails QD = 10,000-25P QS = -5,000 + 50P a. How many nails would be sold for $100? b. At what price would nail sales be zero? c. When P = $200, ...

Whats wrong with this way of thinking economists claim that

What's wrong with this way of thinking? "Economists claim that when the price of something goes up, producers increase the quantity supplied to the market. But last year, the price of oranges was really high and the supp ...

A suppose that for a given year national saving in a

a. Suppose that, for a given year, national saving in a country (an open economy) equals 100, private consumption equals 50, and government consumption equals 20. What is the level of output in this country in this year? ...

Marketing firm specializes in assessments of local

Marketing firm specializes in assessments of local restaurants and have been asked to rate local restaurants. The restaurants are rated as good, fair, or poor. From the firm's rating system, 72% of the restaurants were r ...

Trans-pacific partnership tppa what are the economic

Trans-Pacific Partnership (TPP) A. What are the economic implications? Provide a credible citation. B. What possible impact could this event have on global trade? Provide a credible citation. C. What is President Trump's ...

The risk-free rate is 6 and the expected rate of return on

The risk-free rate is 6% and the expected rate of return on the market portfolio is 13% a.  Calculate the required rate of return on a security with a beta of 1.15.  (Do not round intermediate calculations. Enter your an ...

An article describes a study that appeared in the journal

An article describes a study that appeared in the journal Pediatrics. In this study, researchers looked at records of 2500 children who were participating in a long term health study. They found that 10% of these childre ...

Determine whether the given value is a discrete or

Determine whether the given value is a discrete or continuous variable. People are asked to state how many times in the last month they visited their family doctor.

Cnsider taking a random sample from a nmicrosigma 2

Consider taking a random sample from a N(µ,σ 2 ) distribution. Consider testing the hypothesis H0 : µ = 63 versus the alternative HA : µ 6= 63. Suppose that a random sample of size 16 is taken, σ is known to be 8, and th ...

  • 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

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As