(1)Find q, ∂q/∂Y and ∂q/∂p, when the price that the firm sets is $30.00, and the average disposable income in the market is $3,000.00. (2)Find the price-elasticity of demand for the firm's good at the point in part (1).Use your answer to (2) to estimate the percentage change in demand if the firm raises the price for their good to $31.00 (and average income in the market stays fixed).

Demand for Nuts is given by Q = 50 – 2P. (Not that dQ/Dp= - 2) 1)Calculate the price elasticity of demand.   2)At what price-quantity combination is revenue from sales of nuts maximized? Why? Show your mathematical work. Illustrate by graphing total revenue.   3) A report published in Science magazine shows that eating nuts is correlated with high levels of blood cholesterol. How would this affect the demand for nuts? The revenue maximizing amount of nuts?

Suppose a research report has estimated the demand for a firm's product as ln QXd = 7 − 1.5 ln PX + 2 ln PY − 0.5 ln M + ln A where:Px = $15Py = $6M = $40,000, andA = $350 a. Determine the own price elasticity of demand, and state whether demand is elastic, inelastic, or unitary elastic. Own price elasticity: -1.5 Demand is: elastic b. Determine the cross-price elasticity of demand between good X and good Y, and state whether these two goods are substitutes or complements. Cross-price elasticity: 2 These two goods are: Substitutes. c. Determine the income elasticity of demand, and state whether good Xis a normal or inferior good. Income elasticity:  Good X is: d. Determine the own advertising elasticity of demand.

A microchip company is looking at new product lines and is reviewing the findings of its marketing team. The second product, a semiconductor microchip, has the elasticity of demand function: E(p)=√p^2-6p+5. If they set the price at $5.35 will the demand be elastic or inelastic? To increase the revenue should they raise the price or lower it?