Question: May I please get some help on this problem? All the information provided is included in the screen shot. The coconut oil demand function (Bushena

May I please get some help on this problem? All the information provided is included in the screen shot.

May I please get some help on this problem? All the information

The coconut oil demand function (Bushena and Perloff, 1991) is Q = 1,200 -9.5p +16.2pp + 0.2Y, where Q is the quantity of coconut oil demanded in thousands of metric tons per year, p is the price of coconut oil in cents per pound, pp is the price of palm oil in cents per pound, and Y is the income of consumers. Assume that p is initially 60 cents per pound, pp is 29 cents per pound, and Q is 1,400 thousand metric tons per year. Calculate the price elasticity of demand for coconut oil and the crossprice elasticity of demand (with respect to the price of palm oil). The price elasticity of demand is e = Cl. (Enter your response rounded to three decimal places and include a minus sign.) The cross-price elasticity of demand is a = Cl. (Enter your response rounded to three decimal places.)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!