Sunday
September 21, 2014

Homework Help: economics

Posted by Imran on Friday, November 2, 2012 at 10:54pm.

Assume that demand for product A can be expressed as QA = 500 ¨C 5PA + 3PB and demand for
product B can be expressed as QB = 300 ¨C 2PB + PA. Currently, market prices and quantities for
these goods are PA, = 5, PB = 2, QA = 481, and QB = 301.

a. Suppose the price of product B increases to 3. What happens to the quantity demanded of
both products?

b. Calculate the arc crossİ\elasticity between product A and product B using prices for product
B of 2 and 3.

c. Are these goods substitutes or complements?

Answer this Question

First Name:
School Subject:
Answer:

Related Questions

Managerial Economics - Given the demand & supply Function for product 'x' at ...
Economics - Assume the demand curve for concert tickets is Qd= 300 - c*p and the...
managerial economics - Exercise 1 The marketing manager has estimated the ...
Math - Limits/Derivatives - If a price-demand equation is solved for p, then ...
very EASY Math terms Defintions - Please help someone!!!! a number that can be ...
economics - You are the manager of a firm that receives revenues of $40,000 per ...
managerial economics - 1. Calculate the demand elasticity of demand ( by using ...
Math term definitions - Please help someone!!!! a number that can be expressed ...
economics - suppose the demand curve for a product is given by Q=10-2P+Ps1,where...
Economics - Could you please check these thanks. Directions match each item with...

Search
Members