Explore BrainMass

Calculating own price and cross price elasticity values

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

The demand function for kingston's product is given by
logQ = 2.01 -0.148LogP + 0.25Log Z

Q = the quantity demanded (in tons) of its product, P = the price ( in dollars per ton), and Z = the price(in dollars of a rival product

a. Calculate the price elastic of demand
b. Calculate the cross elasticity of demand between kingston's product and the rival product.

© BrainMass Inc. brainmass.com December 20, 2018, 7:20 am ad1c9bdddf

Solution Preview

a. Calculate the price elastic of demand
logQ = 2.01 -0.148LogP + 0.25Log Z
Differentiating both sides with respect to P, we ...

Solution Summary

Solution describes the steps to calculate own price elasticity and cross price elasticity in the given case.