ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Can I get the answer for 3,4&5 please
For the demand function
Q = 700 – 7P+3A³ + 0.008Y?
where P is the price of the good, A is the alternative price of an alternative good, and Y the income of
the consumers.
When P= 6, A= 3 and Y = 90
1. the price elasticity of demand is
2. the cross-price elasticity of demand is
3. the income elasticity of demand is
4. Is the good superior or inferior?
5. Is the alternative good is a substitute or a complement?
Enter non-integer numerical values as decimals to at least 3 decimal placės. Note: you must use a. and
not , for a decimal point.
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Transcribed Image Text:For the demand function Q = 700 – 7P+3A³ + 0.008Y? where P is the price of the good, A is the alternative price of an alternative good, and Y the income of the consumers. When P= 6, A= 3 and Y = 90 1. the price elasticity of demand is 2. the cross-price elasticity of demand is 3. the income elasticity of demand is 4. Is the good superior or inferior? 5. Is the alternative good is a substitute or a complement? Enter non-integer numerical values as decimals to at least 3 decimal placės. Note: you must use a. and not , for a decimal point.
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