a) What is the price elasticity of demand for hamburger buns? Please provide a numerical answer. If your answer is decimal, please include all decimal digits. If your answer is negative, please put a negative sign in the front. If your answer is a decimal number between -1 and 1, for example, -0.523, please do not omit the zero (meaning that you should have -0.523 in the answer box, not -.523).

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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a) What is the price elasticity of demand for hamburger buns? Please provide a numerical answer. If your answer is decimal, please include all decimal digits. If your answer is negative, please put a negative sign in the front. If your answer is a decimal number between -1 and 1, for example, -0.523, please do not omit the zero (meaning that you should have -0.523 in the answer box, not -.523).

b) What is the cross-price elasticity of demand for hamburger buns? Please provide a numerical answer. If your answer is decimal, please include all decimal digits. If your answer is negative, please put a negative sign in the front. If your answer is a decimal number between -1 and 1, for example, -0.523, please do not omit the zero (meaning that you should have -0.523 in the answer box, not -.523).
 
c) What is the income elasticity of demand for hamburger buns? Please provide a numerical answer. If your answer is decimal, please include all decimal digits. If your answer is negative, please put a negative sign in the front. If your answer is a decimal number between -1 and 1, for example, -0.523, please do not omit the zero (meaning that you should have -0.523 in the answer box, not -.523).
 
d) Is hamburger bun a normal good or inferior good?
a)inferior
b)normal
Hamburger buns have a demand function Q = 40 -2p - 0.25p_P + 0.15Y, where Q is the quantity of
hamburger buns demanded per household per month, p is the price of a hamburger bun in cents,
p_P is the price of a beef patty in cents, and Y is consumer income in dollars. Assume that p is 7
cents, p_P is 75 cents, and Q is 20.
Transcribed Image Text:Hamburger buns have a demand function Q = 40 -2p - 0.25p_P + 0.15Y, where Q is the quantity of hamburger buns demanded per household per month, p is the price of a hamburger bun in cents, p_P is the price of a beef patty in cents, and Y is consumer income in dollars. Assume that p is 7 cents, p_P is 75 cents, and Q is 20.
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