Question: (V) Perfectly price inelastic. 10 Given the following demand function for good X; Q=50-0.4P. +0.5P. -0.25B Substitution effect for a Where; Substitution effects of price

(V) Perfectly price inelastic. 10 Given the following demand function for good X; Q=50-0.4P. +0.5P. -0.25B Substitution effect for a Where; Substitution effects of price effect of t luxury P, is the price of good X, P price of good Y. B consumer's income. rice effect of t necess (a) Determine: Price effect of a giffen (1) Price elasticity of demand, Price effect of an inferi (ii) Cross elasticity of demand. Compensating variation (iii) Income elasticity of demand. bout changing the price (b) Suppose P = 20, P, 30 and B 52 Equivalent variations is Find the value of; nging the price of the g Compensating variation (i) Price elasticity of demand, faction at the new pro (ii) Cross elasticity of demand, CTION B. Write TRU (iii) Income elasticity of demand. tility is assumed to be (c) From your answers in part (b) above. The Quantity of satiety is (i) Row would you advice the producer if she is to increase revenue? farginal utility is the she otal utility is computed (ii) What is the relationship between goods X and Y and suppose the price of good X goes up. how would you advice the Regative marginal utility producer of good Y? Pe slope of indifiore And suppose the income of the consumer went up, how would you advice the producer of Concave in hiference cu convex indifference co

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