Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Microeconomics Expert

Economics


Home >> Microeconomics

The equation for a demand curve has been estimated to be Q = 100 - 10P + 0.5Y where Q is quantity, P is price, and Y is income. Assume that P = 7 and Y = 50.

a. Interpret the equation.
b. What is price elasticity at P = 7 and arc elasticity at the interval between P = 6 and P=7.
c. What is income elasticity at Y = 50 and arc elasticity at the interval between Y = 50 and P=60.
d. Now assume that income is RM70. What is the price elasticity at P = 8? Also, find out arc elasticity at the interval between P=7 and P= 8.

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M959222

Have any Question?


Related Questions in Microeconomics

Assignment 2 writing assignment costs and revenues

Assignment 2: Writing Assignment: Costs and Revenues Structures If viewing this through the Assignment tool, click the title above to go to the Submissions area. This assignment will enable you to: Create tables to illus ...

Question currently the law prevents courts or police from

Question: Currently, the law prevents courts or police from releasing information about the criminal records of people under 18 years old. Members of certain minorities are more likely than other persons to have had prob ...

Question define marginal cost and marginal benefit in new

Question: Define marginal cost and marginal benefit In New State, the bottling law requires that people get a refund of five cents when they return an empty bottle or can. Why does the state pay people to return bottles? ...

Question you work as a researcher at an active equity fund

Question: You work as a researcher at an active equity fund. Your supervisor makes the following statement to you. "Eugene Fama and Robert Shiller won the Nobel Prize in Economics in 2013. Their views on market efficienc ...

Question suppose there are two firms that produce two

Question: Suppose there are two firms that produce two different goods, one with a price elasticity of demand of -0.3 and the other with a price elasticity of demand of -3. Calculate the Lerner Index for both firms and i ...

Question youve invested 10000 in a portable bratwurst stand

Question: You've invested $10,000 in a portable bratwurst stand, giving up the 8% rate of return you could have earned had you invested that money elsewhere. Last year you sold 1600 brats at $3 each; the meat, buns, and ...

Question a monopoly has costs described by tcq60008q demand

Question: A monopoly has costs described by TC(Q)=6000+8Q. Demand is described by P=60-0.1Q. What is the monopolist's profit-maximizing price (P)? The response must be typed, single spaced, must be in times new roman fon ...

Question using the relationship between the price of a

Question: Using the relationship between the price of a visit to a physiotherapist and the quantity of visits demanded, define and distinguish among the direction, the slope, and the position of an economic relationship. ...

Question the dollar declined sharply in 1973-4 and 1977-8

Question: The dollar declined sharply in 1973-4 and 1977-8, and those declines were accompanied by sharply higher inflation. However, when the dollar declined even more sharply in 1986-8, the rate of inflation did not ri ...

Question economies around the world are becoming

Question: Economies around the world are becoming increasingly globalized. How does this globalization affect the choices you face in your economic decisions? Do the effects change if you think of yourself as a consumer ...

  • 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

Follow Us

© Copyright 2013-14 mywordsolution.com All rights reserved