The estimated market demand for good X is where is the estimated number of units of good X demanded, P is the price of the good, M is income, and is the price of related good G. (All parameter estimates are statistically significant at the 1 percent level of significance.)
-At the values in part b, calculate estimates of the following elasticities:
(1) Price elasticity: ‪ = _________.
(2) Cross-price elasticity:‪ = __________.
(3) Income elasticity:‪ = __________.

Question

The estimated market demand for good X is  where  is the estimated number of units of good X demanded, P is the price of the good, M is income, and  is the price of related good G. (All parameter estimates are statistically significant at the 1 percent level of significance.)
-At the values in part b, calculate estimates of the following elasticities:
(1) Price elasticity: ‪  = _________.
(2) Cross-price elasticity:‪  = __________.
(3) Income elasticity:‪  = __________.

Quizplus · Accepted Answer

The Answer of The estimated market demand for good X is  where  is the estimated number of units of good X demanded, P is the price of the good, M is income, and  is the price of related good G. (All parameter estimates are statistically significant at the 1 percent level of significance.)
-At the values in part b, calculate estimates of the following elasticities:
(1) Price elasticity: ‪  = _________.
(2) Cross-price elasticity:‪  = __________.
(3) Income elasticity:‪  = __________.

The Estimated Market Demand for Good X Is Where