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Asap please Suppose corporate office data analytics team has estimated the following elasticities of demand for its xbox: Price elasticity of demand for a xbox
Asap please
Suppose corporate office data analytics team has estimated the following elasticities of demand for its xbox:
- Price elasticity of demand for a xbox is 2.0 (in absolute value terms)
- Cross price elasticity between xbox and those of its competitors is +.5
- Cross price elasticity between xbox and internet is -.3
- Income elasticity of demand for Toyota cars is +1.6
The head of Microsoft gaming production has asked for your help in quantifying the effects of future events on the volume of Xbox production. Compute the effects of each of the following separate events on the quantity demanded of Xboxs. Show all your work.
- Xbox increases car prices by 3%
- The price of competitors' cars increases by 5%
- The price of internet increases by 100%.
- Consumers' incomes fall by 2%
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