Suppose the demand for inkjet printers is estimated to be Q = 1000 - 5 p +
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Question:
Suppose the demand for inkjet printers is estimated to be Q = 1000 - 5p + 10pX - 2pZ + 0.1Y. If p = 80, pX= 50, pZ= 150, and Y = 20,000, answer the following sub-questions:
What is the price elasticity of demand?
What is the cross-price elasticity with respect to commodity X? Give an example of what commodity X might be.
What is the cross-price elasticity with respect to commodity Z? Give an example of what commodity Z might be.
What is the income elasticity?
(If you could show your work that would be great!)
Related Book For
Basic Finance An Introduction to Financial Institutions Investments and Management
ISBN: 978-1111820633
10th edition
Authors: Herbert B. Mayo
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