Answer to Question #51471 in Microeconomics for William Waso WWasonga Omole
Your question (max 1024 symbols)Given the following estimated demand equation,
Where Qy is the quantity demanded of good Y, Py is the price of good Y, I is the income of the consumer, Px, Pw and Pz are the prices of good X, W and Z respectively. Py = 100, Pw = 300, Pz = 400, Px =100 and M = 40,000. Compute
1. income elasticity of demand
2. own-price elasticity of demand
3. three cross-price elasticity of demand.
Dear William, The estimated demand equation is missed in the question. Thereby it's impossible to answer on it.