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Suppose the price of apples rises from $3 to $3.50 and your consumption of apples drops from 35 pounds of apples a month to 20 pounds of of apples. Calculate your price elasticity of demand of apples. what can you say about your price elasticity of demand of apples? Is it elastic, inelastic, or unitary Elastic? Be sure to show work you used and support your answer.

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Suppose the price of apples rises from $3 to $3.50 and your consumption of apples drops from 35 pounds of apples a month to 20 pounds of of apples. Calculate your price elasticity of demand of apples. what can you say about your price elasticity of demand of apples? Is it elastic, inelastic, or unitary Elastic? Be sure to ...

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Response provides steps to calculate the elasticity

$2.19
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Quantitative analysis

1. The demand curve for a product is given by Qdx =1,000 - 2pPx +.02Pz where Pz = $400.

a. What is the own price elasticity of demand Px = $154? Is demanded elastic or inelastic at this price? What would happen to the firm's revenue if it decided to charge a price below $154?
b. What is the own price elasticity of demand Px = $354? Is demanded elastic or inelastic at this price? What would happen to the firm's revenue if it decided to charge a price below $354?
c. what is the cross-price elasticity of demand between good X and good Z when Px = $154? Are goods X and Z substitutes or compliments?

2. Suppose the demand function for a firm's product is given by
In Qdx =3-0.5 In Px - 2.5 In Py+In M+2 In A
Where
Px = $10
Py = $4
M = $20,000, and
A =$250
a. Determine the own price elasticity of demand, and state whether demand is elastic, inelastic, or unitary elastic.
b. Determine the cross-price elasticity of demand between good X and good Y, and state whether these two are substitutes or complements.
c. Determine the income elasticity of demand, and state whether good X is a normal or inferior good.
d. Determine the own advertising elasticity of demand.

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