66 936
Assignments Done
99,1%
Successfully Done
In October 2018

Answer to Question #52345 in Microeconomics for lawrence

Question #52345
The coconut demand function is Q=1200-9.5p+16.2pp+0.2y . Assume that p is initially $ 0.45 per kg, pp =$ 0.31 per kg and Q=1275 thousand matric tons per year. Calculate income elasticity of demand for coconut oil?
Expert's answer
Qd = 1200-9.5p+16.2pp+0.2y.
If p is initially $ 0.45 per kg, pp =$ 0.31 per kg and Q=1275 thousand
metric tons per year, then 1275 = 1200 - 4.275 + 5.022 + 0.2y, 
0.2y = 74.253
y = 371.265
Income elasticity of demand for coconut oil is Qd'(y) = (1200 - 4.275 + 5.022 + 0.2y)' = 0.2.

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!

Comments

No comments. Be first!

Leave a comment

Ask Your question

Submit
Privacy policy Terms and Conditions