Consider a scenario where the demand is estimated to be represented by the following equation:
$$Q _ { x } = 1000 - 10 P _ { x } + 0.1 I + 10 P _ { y }$$ , where Px is the price of X, I represents the income of the consumer, Py is the price of another related in consumption good, and Qx is the quantity demanded of X. If we assume that the current price of Y is 10 and the current income level is 10000, what would the point elasticity of demand be at the price of 200?

Question

Consider a scenario where the demand is estimated to be represented by the following equation: 
 $$Q _ { x } = 1000 - 10 P _ { x } + 0.1 I + 10 P _ { y }$$ , where Px is the price of X, I represents the income of the consumer, Py is the price of another related in consumption good, and Qx is the quantity demanded of X. If we assume that the current price of Y is 10 and the current income level is 10000, what would the point elasticity of demand be at the price of 200?

Quizplus · Accepted Answer

The Answer of Consider a scenario where the demand is estimated to be represented by the following equation: 
 $$Q _ { x } = 1000 - 10 P _ { x } + 0.1 I + 10 P _ { y }$$ , where Px is the price of X, I represents the income of the consumer, Py is the price of another related in consumption good, and Qx is the quantity demanded of X. If we assume that the current price of Y is 10 and the current income level is 10000, what would the point elasticity of demand be at the price of 200?

Consider a Scenario Where the Demand Is Estimated to Be Qx=1000−10Px+0.1I+10PyQ _ { x } = 1000 - 10 P _ { x } + 0.1 I + 10 P _ { y }Qx​=1000−10Px​+0.1I+10Py​

Consider a Scenario Where the Demand Is Estimated to Be $Q _ { x } = 1000 - 10 P _ { x } + 0.1 I + 10 P _ { y }$