- #1
DreamBell
Calculation on Price Elasticity of Demand problem ... Need Advices ...
Give following demand function:
Q = 2.0 P^-1.33Y^2.0A^0.50
Q = Quantity demanded (Thousads of units)
P = Prices ($/Unit)
Y = Disposable income per capita ($ thousands)
A = Advertising expenditures ($ thousands)
When P = $2/unit, Y = $8 (i.e. $8000), and A = $25 (i.e. $25000)...
1. Price Elasticity of demand
2. The approximate percentage increase in demand if disposable income percentage increased by 3%.
3. The approximate percentage increase in demand if Advertising Expenditure are increased by 5%.
Well, i really not so understand how to resolved the ab0ve question. Is that i need to draft a graft in order to get the answer ?
Hopefully hav some one professional here to guide me on this kind of question .
regards,
Dream Bell
Give following demand function:
Q = 2.0 P^-1.33Y^2.0A^0.50
Q = Quantity demanded (Thousads of units)
P = Prices ($/Unit)
Y = Disposable income per capita ($ thousands)
A = Advertising expenditures ($ thousands)
When P = $2/unit, Y = $8 (i.e. $8000), and A = $25 (i.e. $25000)...
1. Price Elasticity of demand
2. The approximate percentage increase in demand if disposable income percentage increased by 3%.
3. The approximate percentage increase in demand if Advertising Expenditure are increased by 5%.
Well, i really not so understand how to resolved the ab0ve question. Is that i need to draft a graft in order to get the answer ?
Hopefully hav some one professional here to guide me on this kind of question .
regards,
Dream Bell