Suppose you have the generic demand curveq 3000

Economics

Suppose you have the generic demand curve

Q = 3000 - 400P – 300P1 + 200P2 + 0.05M

Where P is the price of the good, P1 and P2 are prices of related goods and M is income.

Currently P is $1.00, P1 is $0.50, P2 is $1.50 and M is $50,000.

1) Calculate demand using the current market conditions. (Show your work)

2) Is P1 a substitute or complement? (Why)

3) Is P2 a substitute or complement? (Why)

4) Is this product normal it inferior to Income? (Why)

5) Under current market conditions calculate the price elasticity for this product. (Show your work)

6) What conclusions can be made from the elasticity you calculated in question 5?

View complete question

Business Economics, Economics

Category:- Business Economics
Reference No.:- M91707462

Have any Question?Write your Review or question?

Related Questions in Business Economics

A population has a mean mu83 and a standard deviation

A population has a mean μ=83 and a standard deviation σ=26. Find the mean and standard deviation of a sampling distribution of sample means with sample size n=247.

1 a certain compact disc player randomly plays each of 10

1. A certain compact disc player randomly plays each of 10 songs on a CD. Once a song is played, it is not repeated until all the songs on the CD have been played. In how many different ways can the CD player play the 10 ...

Suppose demand and supply are given byqdxnbsp 14 - 05

Suppose demand and supply are given by: Q d x = 14 - 0.5 P x and Q s x = .25 P x - 1 a) Determine the equilibrium price and quantitiy. b) Suppose a $12 excise tax is imposed on the good. Determine the new equilibrium ...

Research scenarionbspa community psychologist is interested

Research Scenario: A community psychologist is interested in whether people's self-reported degree of religious belief predicts their self-reported feelings of well-being. She administers two questionnaires to 17 indivi ...

You have an opportunity to buy a bond with a face value of

You have an opportunity to buy a bond with a face value of $10,000 and coupon rate of 14%, payable semi-annually. NOTE: Interest per 6-month period is 7% of Face Value (i.e. $10,000x0.07 = $700 per 6-month period). (i) I ...

Determine the sample size needed to construct a 90

Determine the sample size needed to construct a 90?% confidence interval to estimate the average GPA for the student population at a college with a margin of error equal to 0.5. Assume the standard deviation of the GPA f ...

A population has a mean mu90 and a standard deviation

A population has a mean mu=90 and a standard deviation sigma=20. Find the mean and standard deviation of a sampling distribution of sample means with sample size n=254. mean/x= ? (simplify) sigma/x= ? ( type an integer o ...

Assume that jimmy cash has 2100 in his checking account at

Assume that Jimmy Cash has $2,100 in his checking account at Folsom Bank and uses his checking account card to withdraw $210 of cash from the bank's ATM machine. By what dollar amount did the M money supply change as a r ...

In 15 experiments studying the electrical behavior of

In 15 experiments studying the electrical behavior of single cells, 11 use microelectrodes made of metal and the other 4 use microelectrodes made from glass tubing. If two of the experiments are to be terminated for fina ...

Given a business situation word problem or case study such

Given a business situation word problem or case study such as one dealing with processing time or quantity of fill, use the normal probability distribution to determine a course of action. Assume that a population is nor ...

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

Recent Questions

Ask Business Economics Expert