The demand function for ACME Widgets is q = q (p,ps, Y), where: q =...

 

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The demand function for ACME Widgets is q = q (p,ps, Y), where: • q = monthly demand for ACME Widgets (measured in 1000s of units). . p = price of an ACME Widget (measured in dollars). • ps = average price of substitutes for ACME Widgets (measured in dollars). . Y = average monthly income in the market for ACME Widgets (measured in $1000s). . and •q(10,9,5) = 4.7 aq/ap(10,9,5) = -0.48 . • aq/ops(10,9,5) = 0.75 aq/aY(10,9,5) = 0.26 . . . (a) Suppose that ps increases to 9.32 and Y increases to 5.4, but p does not change. In this case, demand will increase by about [Select] (b) In this case, ACME can increase their price (p) by [Select] , and keep demand at about 4700 units/month (as it was before). (c) If they do this, then the change in ACME's monthly revenue will be about [Select] The demand function for ACME Widgets is q = q (p,ps, Y), where: • q = monthly demand for ACME Widgets (measured in 1000s of units). . p = price of an ACME Widget (measured in dollars). • ps = average price of substitutes for ACME Widgets (measured in dollars). . Y = average monthly income in the market for ACME Widgets (measured in $1000s). . and •q(10,9,5) = 4.7 aq/ap(10,9,5) = -0.48 . • aq/ops(10,9,5) = 0.75 aq/aY(10,9,5) = 0.26 . . . (a) Suppose that ps increases to 9.32 and Y increases to 5.4, but p does not change. In this case, demand will increase by about [Select] (b) In this case, ACME can increase their price (p) by [Select] , and keep demand at about 4700 units/month (as it was before). (c) If they do this, then the change in ACME's monthly revenue will be about [Select]

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a Ps increases by 932 and Y increases by 54 but p does not change In this ... View the full answer