The demand function for bicycles in Holland has been estimated to be:
Q = 2,000 + 15Y - 5.5P
Where Y is income in thousands of euros, Q is the quantity demanded in units, and P is the price per unit. When P = 150 euros and Y = 15 (000) euros, determine the following:
a. Price elasticity of demand
b. Income elasticity of demand
a. From the function, we know when P = 150 and Y=15, Q = 2,000 + 15*15 - ...
Determine the demand function for bicycles in this post.