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Qy=100- 4PX- 3Py+2Pz+ 0.001M, M being the income of the consumer while x,y,z are three different goods. Given are the values Px= 21, Py= 8
Qy=100- 4PX- 3Py+2Pz+ 0.001M, M being the income of the consumer while x,y,z are three different goods. Given are the values Px= 21, Py= 8 Pz= 9, M= 55000. Calculate the following a. Own price elasticity b. Cross price elasticity with the other two goods. Comment on substitutes/complement goods c. Income elasticity Comment on the type of goods d. Determine the effect on Qy of a 10% increase in the price of other two goods
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