You are provided of the following demand function: Qxd 10,000 - %3D 4PX + 5PY + 2M + Al where PX is the price of X, PY is the price of good Y, M is income, and Al is the amount of advertising on X. Suppose the present price of good X is $50, PY = $100, M = $25,000, and Al = 1,000 units. What is the quantity demanded of good X? *

You are provided of the following demand function: Qxd 10,000 - %3D 4PX + 5PY + 2M + Al where PX is the price of X, PY is the price of good Y, M is income, and Al is the amount of advertising on X. Suppose the present price of good X is $50, PY = $100, M = $25,000, and Al = 1,000 units. What is the quantity demanded of good X? *

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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4. The demand function of certain good is given by: P = (50 + Y) e 0.1Q, where Y denotes the income level. %3D a) If P = 20 andY = 50, calculate the quantity demanded. b) Is the good inferior or superior? c) If Y = 50, calculate the value of Q for which demand is unit elastic.
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PROBLEM (4) The demand for private jets (x) is given by QD= 20 - - P/² + Py where px is the price of jets, py is the price of yachts and I is the average income level. (a) Is a jet a normal or inferior good? Are yachts and jets substitutes or complements ?(explain your reasoning in a sentence) At the point I = px = py=10 calculate (b) the (own) price elasticity of demand (c) the cross price elasticity of demand (demand for jets with respect to the price of yachts) (d) the income elasticity of demand (Calculus help: the derivative of - is X X
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