Sam is rich and at this high income level, her demand for good X is independent of income and given by X*=46.4- 3 px/Py where px and py denote respectively the price of good X and the price of good Y. Assuming the price of good Y is equal to 4.1, find the value of the price of good X at which the own-price elasticity of Sam's demand is equal to -3.

Sam is rich and at this high income level, her demand for good X is independent of income and given by X*=46.4- 3 px/Py where px and py denote respectively the price of good X and the price of good Y. Assuming the price of good Y is equal to 4.1, find the value of the price of good X at which the own-price elasticity of Sam's demand is equal to -3.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

The income elasticity of demand of good B, is as follows: Good B: 0.2 If income rises by 5 %. By how much the quantity demanded of B will change?
Suppose a low-income family that earns K750 per month consumes 8 Kgs of Hamburgers and 2 Kgs of Beef in Month 1. However, in month 2 when the income of the family rises to K950, the quantity of Hamburgers consumed by the family reduces to 5 Kgs while the quantity of Beef increases to 4Kgs. What is the income elasticity of demand for hamburger? What is the income elasticity of demand for steak?
Suppose the own price elasticity of demand for good X is -2 and the price of good X increases by 10 percent how much consumption will change
Sam is rich and at this high income level, her demand for good X is independent of income and given by X*=35.4- 6 px/Py where px and py denote respectively the price of good X and the price of good Y. Assuming the price of good Y is equal to 4.6, find the value of the price of good X at which the own- price elasticity of Sam's demand is equal to -6.
a) A consumer has a utility function given by U = x025 y0.75 He has an income of £100, the price of good x is £5 and the price of good y is £10. How much of the 2 goods x and y does the consumer buy? Take a picture of your workings and upload with your answer, or type out your workings. b) For the utility function above, what is the cross-price elasticity of demand for good x with respect to the price of good y? Take a picture of your workings and upload with your answer, or type out your workings. c) For the utility function above, what is the elasticity of demand of good x with respect to its own price? Take a picture of your workings and upload with your answer, or type out your workings.
The relationship between a consumer's income and quantity of X , he consumes is given by the equation M = 1000Q^2 . Calculate his point income elasticity of demand for X when income is 64,000
For each scenario, calculate the income elasticity of demand, determine whether the good is inferior or normal, and classify the good's income elasticity. When calculating the income elasticity of demand, use the midpoint formula. Round your answers to the nearest hundredth. Sylvia's annual salary increases from $100,500 to $109,500, and she decides to increase the number of vacations she takes per year from three to four. Calculate her income elasticity of demand for vacations. income elasticity vacations = income elasticity of Blake eats two bags of generic potato chips each day, and does not purchase any name-brand chips. Blake's hourly wage increases from $8.75 to $15, and he decides to eat one name-brand bag and one generic-brand bag each day. Calculate Blake's income elasticity of demand for generic potato chips. generic chips Vacations are a = As a good, vacations are Generic potato chips are a As a good, generic potato chips are
Q: Sally gets a raise of 12%, and as a result, her demand for burgers decreases by 9%. What is the income elasticity of Sally’s demand for burgers? Are burgers a normal good, an inferior good, or neither for Sally?
If Beluga caviar has an income elasticity of demand which is > 0 and Ramen noodles have an income elasticity of < 0, it means that Multiple Choice The two goods are complements Beluga caviar is a normal good and Ramen noodles are an inferior good Beluga caviar has fewer substitutes than Ramen noodles Beluga caviar is an inferior good and Ramen noodles are a normal good
What is the income elasticity of soda (as a function of prices and income)? Income elasticity of soda: n = ()) I – 10P, Px P = 1.5, I = 36
If the cross-price elasticity of demand for good X with respect to good Y equals 0, how is that value interpreted? These goods are complements, and the quantity demanded of good X increases if the price of good Y decreases. These goods are unrelated, and a change in the price of good Y has no effect on the quantity of good X demanded. These goods are normal goods, and a change in buyers income increases the quantity demanded of good X. These goods are substitutes, and the quantity demanded of good X decreases if the price of good Y decreases.
Suppose income increases by 25 percent and, as a result, the quantity of a particular brand of automobile demanded (holding the price for this particular automobile constant) increases by 39 percent. The income elasticity of demand for this brand of car is (Enter your response rounded to two decimal places and include a minus sign if appropriate.)