The demand function good X is ln Qdx = a + b ln Px + c ln
Question:
a. If M = 45,000 and Px = 5.69, compute the own price elasticity of demand based on these estimates. Determine whether demand is elastic or inelastic.
b. If M = 45,000 and Px = 5.69, compute the income elasticity of demand based on these estimates. Determine whether X is a normal or inferior good.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 64% (14 reviews)
a The ownprice elasticity ...View the full answer
Answered By
RAHUL BAROI
After getting M.Sc degree in Life Sciences, I've qualified 3 national level test conducted by Indian Govt. agency for fellowship of Ph.D Program. I have qualified test conducted by CSIR-UGC, DBT and selected for DST Fellowship. I am recipient of DST INSPIRE Scholarship for my Under graduate and Post Graduate program in Life Sciences for being in the top 1% of class XII standard board examination. I've also selected for Central Sector Scheme of Scholarship provided by Ministry of Human Resource and Development, Govt of India.
Although I don't have any experience but I like to share knowledge among the people but unfortunately I didn't get any opportunity or platform.
I am not socially active in facebook or in other social media but I keep my self updated with Scientific and all other Govt. related programs.
0.00
0 Reviews
10+ Question Solved
Related Book For
Managerial Economics and Business Strategy
ISBN: 978-0071267441
7th Edition
Authors: Michael R. baye
Question Posted:
Students also viewed these Economics questions
-
The demand function for good X is Qdx = a + bPx + cM + e, where Px is the price of good X and M is income. Least squares regression reveals that a = 5.25, b = ?? 1.36 c = ??0.14, a = ?? 6.19. a = ??...
-
For a fully continuous 20-year deferred whole life insurance of 1000 on (40), you are given: (i) Mortality is uniformly distributed with w = 120. (ii) 8 = 0.05 (iii) Premiums are payable for 30...
-
If the elasticity is greater than 1, is demand elastic or inelastic? If the elasticity equals 0, is demand perfectly elastic or perfectly inelastic?
-
A department store is being planned for a new shopping mall. Using the information in Table 4.8, assign departments to locations in order to minimize traffic flow through the store. TABLE 4.8...
-
Find the mean, median, standard deviation, and range. Are the results statistics or parameters? Listed below are the arrival delay times (min) of randomly selected American Airlines flights that...
-
The Paige Company wants to develop a cost equation to determine its total electricity cost for a given month. It has determined that kilowatt hours used is the best predictor of electricity cost. It...
-
What are the building blocks of a sequence diagram?
-
Consider an infinitely long continuous string with linear mass density p1 for x < 0 and for x > L, but density p2 > p1 for 0 < x < L. If a wave train oscillating with an angular frequency w is...
-
The Ferre Publishing Company provided the following data for its three service departments and two operating departments. Costs Service Departments Administration Janitorial $ 140,000 Square feet of...
-
1. Describe the leadership style of David Norris? Include in your explanation the nature of the relationship he had with Lindsay Farrow. 2. Do you consider the decisions made by Norris dysfunctional...
-
Suppose the true inverse demand relation for good X is P = a + bQ + e, and you estimated the parameters to be = 10, b = 2.5, a = 1, and b = 0.5. Find the approximate 95 percent confidence interval...
-
Revenue at a major cellular telephone manufacturer was $1.4 billion for the nine months ending March 2, up 97 percent over revenues for the same period last year. Management attributes the increase...
-
The following is a summary of Ellie's bank account for the year ended 31 December 2016: All of the business takings have been paid into the bank with the exception of 34,900. Out of this, Ellie has...
-
Examine the Dahlgren and Whitehead (1991) model of health determinants. Define health determinants . Explain the relationship between health determinants and public health's role in healthcare....
-
The case the Tallahassee Democrat's ELITE team evaluates on building effective team and team works. In this case study, Fred Mott, the general manager of the democrat went far beyond its original...
-
Your executive summary and paper must include all the elements listed below, so be sure to address each point. You may also want to review the performance-level descriptions for each criterion in the...
-
AE had the following three options to increase capacity: expand current facility, new plant alongside the existing plant, and new plant in a different location. Analyze the pros and cons of each...
-
If you see your boss violate ethical codes of conduct and mishandle client information on multiple occasions, you know he or she should be disciplined for it. If you try to go over your boss's head...
-
Express \(f_{i}^{\prime \prime}\) in terms of \(f_{i}, f_{i-1}, f_{i-2}\) in a uniform grid.
-
Refrigerant R-12 at 30C, 0.75 MPa enters a steady flow device and exits at 30C, 100 kPa. Assume the process is isothermal and reversible. Find the change in availability of the refrigerant.
-
At 368C the NMR resonances for the ring methyl groups of isopropylmesitylene (protons H a and H b in the following structure) are two singlets at 2.25 and 2.13 with a 2 : 1 intensity ratio,...
-
Recently, Pfizer and Allergan-the makers of Viagra and Botox, respectively-initiated a $160 billion merger. Pharmaceutical companies tend to spend a greater percentage of sales on R&D activities than...
-
In 2006, the five leading suppliers of digital cameras in the United States were Canon, Sony, Kodak, Olympus, and Samsung. The combined market share of these five firms was 60.9 percent. The leading...
-
The manager of a local monopoly estimates that the elasticity of demand for its product is constant and equal to -3. The firm's marginal cost is constant at $20 per unit. a. Express the firm's...
-
A business provides services valued at 1 1 0 0 and sends an invoice to the client. The client has promised to pay in one month. which two accounts will be affected?
-
Rushing's financial statements were finalized on March 3, 2025. Required: 1. What amount(s) if any, related to the situations described should Rushing report among current liabilities in its balance...
-
Monroe Company produces and sells three products. Information regarding these three products for 2024, the most recent year, is provided below: selling price per unit Product #1 $26 variable costs...
Study smarter with the SolutionInn App