Question
ELASTICITY EXERCISE Name _____________________________11) Due ____________ Please show work in detail. All questions utilize the multivariate demand function for Smooth Sailing sailboats in C6 on
ELASTICITY EXERCISE
Name _____________________________11) Due ____________ Please show work in detail.
All questions utilize the multivariate demand function for Smooth Sailing sailboats in C6 on text page 83.Compute to three decimal places.
Initial values are: PX = $9500 PY = $10000 I = $15000 A = $170000 W = 160
This function is: Qs = 89830 -40PS +20PX +15PY +2I +.001A +10W
1.(a) Use the above to calculate thearc price elasticity of demand between PS = $8000 decreasing to PS = $7000. The arc elasticity formula is:
AQ AP P1 + P2 Q1 + Q2
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
