Question
8 -Assume that the demand function for a noncompetitive firm is Q=750 - 2P 2 + 0.05 I 2 where I is the average household
8-Assume that the demand function for a noncompetitive firm is
Q=750 - 2P2+ 0.05 I2
where I is the average household income in $1000.
a)Determine the price and income elasticity of demand at price P = 10 and average income of $40,000.
b)Assume P=15 At what income level the income elasticity ofdemand is unit elastic?
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Plenitude The New Economics Of True Wealth
Authors: Juliet Schor
1st Edition
1594202540, 9781594202544
