Purchase Solution

Price elasticity of demand: good X

Not what you're looking for?

Ask Custom Question

The demand for good X has been estimated by Qxd = 20 − 5Px + 4Py. Suppose that good X sells at $3 per unit and good Y sells for $2 per unit. Calculate the own price elasticity

Purchase this Solution
Solution Summary

This solution calculates the price elasticity given a demand and prices per unit.

Solution provided by:
Radhika Lakshmi, MPhil
Education
  • MPhil, Madurai Kamaraj University
  • MCom, Annamalai University
  • IATA, International Air Transport Association
Recent Feedback
  • "Great explanations on how the answers were obtained."
  • "Love the way she explains everything step by step."
  • "Solutions were thoroughly explained."
  • "Excellent explanations of how problems are solved"
  • "Thanks"
Purchase this Solution
Free BrainMass Quizzes
Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

View More Free Quizzes
Related BrainMass Solutions

  • Predicting Changes in Demand

    of good Y = 10% % change in demand(consumption) of good X = cross price elasticity of demand*% change in price of good Y

  • Supply and Demand and Elasticity Question

    Calculate the cross-price elasticity of demand between goods X and Y at the given prices. b. Are goods X and Y substitutes or complements? c. What is the own price elasticity of demand at these prices? d.

  • Calculating quantity demanded, price elasticity, income elasticity of demand, and statistical significance

    Use it to calculate the own-price arc elasticity of demand and the cross-price elasticity of demand. Determine whether Good Y is a complement or a substitute for Good X.

  • Price elasticity of demand and expenditure

    210133 Price elasticity of demand and expenditure Suppose the own-price elasticity of demand for good X is -0.5, and that the price of good X increases by 10%. What would you expect to happen to the total expenditures on good X? A. increase.

  • Calculating the Elasticity Values in the Given Case

    What is the price elasticity of demand of good X? b. What is the cross-price elasticity of good X with respect to the price of good Y? c. what is the income elasticity of good X? d.

  • price elasticity of demand

    115254 Price Elasticity of Demand and Coefficients If good"X" has a price elasticity of demand equal to "2" and good "Y" has a coefficient equal to "1.5", which has a more elastic demand? WHY?

  • Income Elasticity

    21022 Income Elasticity Assuming there are three determinants for demand of good X. There are price of good X and Y and money income. How to find out and calculate 1.INCOME ELASTICITY 2.CROSS-PRICE ELASTICITY 3.OWN PRICE ELASTICITY.

  • Analyzing Situations with Elasticity Concepts

    Suppose the own price elasticity of demand elasticity of demand for good X is -2, its income elasticity is 3, its advertising elasticity is 4, and the cross-price elasticity of demand between it and good Y is -6.

  • Determining and interpreting elasticities of demand

    elastic b) Determine the cross price elasticity of demand between good X and good Y and state whether these two goods are substitutes or compliments c) Determine the income elasticity of demand state whether good X is normal or inferior d) Determine

  • Calculating Elasticity Values and Demand Curve

    Determine the cross-price elasticity of demand between good X and good Y, and state whether these two are substitutes or complements. c. Determine the income elasticity of demand, and state whether good X is a normal or inferior good. d.

View More Related Solutions