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    mumbake's Avatar
    mumbake Posts: 3, Reputation: 1
    New Member
    		  
    #1

    Apr 9, 2013, 10:30 AM
    Elasticity
    You estimate that the price elasticity of demand for one-acre plots in Lusaka is -1.5 and that income elasticity of demand is 5. Land owners intend to increase the price of a one-acre plot by 8% as they expect household disposable incomes to increase by 5%.
    (1) If sales of one acre plots are 20,000 units this year, how many such plots do you expect to be sold next year?
    (2) If land owners would like to increase sales by 6%, by how much should they increase the price of a one-acre plot?
    odinn7's Avatar
    odinn7 Posts: 7,691, Reputation: 1547
    Entomology Expert
    		  
    #2

    Apr 9, 2013, 10:31 AM
    1) True
    2) False
    mumbake's Avatar
    mumbake Posts: 3, Reputation: 1
    New Member
    		  
    #3

    Apr 9, 2013, 10:36 AM
    Hy odinn.. I don't understand your solution. I was expecting a numerical solution not a true/false statement.kindly elaborate further
    odinn7's Avatar
    odinn7 Posts: 7,691, Reputation: 1547
    Entomology Expert
    		  
    #4

    Apr 9, 2013, 10:44 AM
    Ok, here is the answer...

    We are not allowed to do school work for you. You have to do it... and show your work. If you need help with it, someone may come along that can help you.

    To just copy and paste a question and then expect an answer... no, we can't do it.
    mumbake's Avatar
    mumbake Posts: 3, Reputation: 1
    New Member
    		  
    #5

    Apr 9, 2013, 10:46 AM
    Lol
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