Suppose we have the following hypothetical demand function


Qx = 600 - 3px + 0.04I - 2pz
Where Px = $ 70, Pz = 68, I = $ 24,000 (disposable income per capita)


a. Interpret in words the meaning of the coefficient of the variable I
b. How can we classify products X and Z
c. What is the reduced demand function
d. What is the demand equation
e. Given the current prices and income per capita, determine the expected sales
f. The price of product X, Px = 70, Calculate the price point elasticity of demand
g. Given your answer in the f, we can classify as elastic or inelastic demand
h. If we increase the price impact will 3% increase in total revenues of product X

What do YOU think ?
While we're happy to HELP we wont do all the work for you.
Show us what you have done and where you are having problems..

Don't know anything about Economics, trying to help my sick daughter finish one of her classes homework. I appreciate, any help.

Quote:

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Originally Posted by Curlyben

What do YOU think ?
While we're happy to HELP we wont do all the work for you.
Show us what you have done and where you are having problems..

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Don't know anything about Economics, trying to help my sick daughter finish one of her classes homework. I appreciate, any help.

I think you should get her a tutiour