58 669
Assignments Done
Successfully Done
In March 2018
Your physics homework can be a real challenge, and the due date can be really close — feel free to use our assistance and get the desired result.
Be sure that math assignments completed by our experts will be error-free and done according to your instructions specified in the submitted order form.
Our experts will gladly share their knowledge and help you with programming homework. Keep up with the world’s newest programming trends.

Answer on Macroeconomics Question for Sarah

Question #39432
The demand for Wanderlust Travel Services (X) is estimated to be:
QX =22,000–2.5PX +4PY –M+1.5AX

where AX represents the amount of advertising spent on X, M is income per capita, and the other variables have their usual interpretations.

Suppose that the price of good X is $450, good Y sells for $40, the company utilizes 3000 units of advertising, and consumer income is $20,000.

A. Calculate the elasticity of demand for good X with respect to the price of X, the price of Y, income, and advertising.

B. Should the price of good X be raised to increase total revenue? Explain why or why not.

C. Calculate consumer surplus at the profit‐maximizing price if the marginal cost is $264.
Expert's answer

Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!


No comments. Be first!

Leave a comment

Ask Your question