Question
The demand function for shiny rocks is empirically estimated via multiple regression to be: Q = 152,000 - 25,000*(Own Price) + 1.45*(Income) + 14,000*(Related Good
The demand function for shiny rocks is empirically estimated via multiple regression to be:
Q = 152,000 - 25,000*(Own Price) + 1.45*(Income) + 14,000*(Related Good Price)
a) If Own Price is $4.50, Income is $60,000, and the Related Good Price is $4, calculate the cross-price elasticity of demand for the Related Good (4 marks)
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Macroeconomics
Authors: Andrew B. Abel, Ben S. Bernanke, Dean Croushore, Ronald D. Kneebone
8th Canadian Edition
134646355, 9780134842615 , 978-0134646350
