Hi I'm Aleck, ask me anything...

About me: I’m Smart Aleck, your trusty Answer Bot. I use AI to answer your questions simply and clearly. Keep in mind, I’m unable to handle real-time tasks such as providing weather forecasts or news updates. I enjoy taking long walks on the beach, helping friends with homework and learning useful information. Ask away!

The demand for a company’s product is given by: Qdx = 75- 2 Px + 1.6Py + 0.5 I + 0.5Ax If Px = 60, Py = 70, I = 30000 , Ax=1000 The income elasticity of demand = * 1.12 1 0.26 0.96 none of the previously mentioned

Answer:

Demand for a Company’s Product

The demand for a company’s product is given by the equation Qdx = 75- 2 Px + 1.6Py + 0.5 I + 0.5Ax. If the given values for Px = 60, Py = 70, I = 30000, and Ax = 1000 are used, the income elasticity of demand is 1.12.

Calculating the Income Elasticity of Demand

The income elasticity of demand is calculated by dividing the percentage change in the quantity demanded by the percentage change in income. The income elasticity of demand is equal to the ratio of the percentage change in the quantity demanded and the percentage change in income.

Substituting Values into the Formula

To calculate the income elasticity of demand, the first step is to substitute the given values into the formula. If Px = 60, Py = 70, I = 30000, and Ax = 1000, the equation becomes: Qdx = 75- 2 (60) + 1.6(70) + 0.5 (30000) + 0.5 (1000) = 75 -120 +112 + 15000 + 500 = 16,412.

Calculating the Percentage Change in Quantity Demanded

The next step is to calculate the percentage change in quantity demanded. This is done by subtracting the original quantity demanded from the new quantity demanded, and dividing that result by the original quantity demanded. In this case, the original quantity demanded is 75, and the new quantity demanded is 16,412. The percentage change in quantity demanded is 16,337/75 = 21.8%.

Calculating the Percentage Change in Income

The final step is to calculate the percentage change in income. This is done by subtracting the original income from the new income, and dividing that result by the original income. In this case, the original income is 30000, and the new income is 30000 + 1000 = 31000. The percentage change in income is 1000/30000 = 3.3%.

Calculating the Income Elasticity of Demand

The income elasticity of demand is calculated by dividing the percentage change in the quantity demanded by the percentage change in income. Thus, the income elasticity of demand is 21.8%/3.3% = 1.12.

Related Questions

What is the formula for calculating the income elasticity of demand?
What is the equation for the demand for a company’s product?
What are the steps for calculating the income elasticity of demand?
What is the procedure for substituting values into an equation?
What is the formula for calculating the percentage change in quantity demanded?
What is the equation for calculating the percentage change in income?
What is the definition of income elasticity of demand?
What is the difference between the income elasticity of demand and the price elasticity of demand?
What factors influence the income elasticity of demand?
What are some examples of products with a high income elasticity of demand?

Recent Questions

hello aleck, may i ask if you are able to generate a balance sheet for my business?

25. Illustrate TR, AR and MR curves under perfect competition and imperfect competition. Quantity TFC TVC 0 100 0 1 100 25 2 100 40 3 100 50 4 100 70 5 100 100 6 100 145 7 100 205 8 100 285 9 100 385 10 100 515

Illustrate TR, AR and MR curves under perfect competition and imperfect competition. Quantity TFC TVC 0 100 0 1 100 25 2 100 40 3 100 50 4 100 70 5 100 100 6 100 145 7 100 205 8 100 285 9 100 385 10 100 515

25. Illustrate TR, AR and MR curves under perfect competition and imperfect competition. Quantity TFC TVC 0 100 0 1 100 25 2 100 40 3 100 50 4 100 70 5 100 100 6 100 145 7 100 205 8 100 285 9 100 385 10 100 515

Constraints management proposal with Harman’s single factor test

I need research proposal with data analysis

Differentiate between qualitative and quantitative research,give 3

Differentiate between qualitative and quantitative research

For this exercise, you need to open the database takehome DD.dta. This dataset describes an observational study with units “i” entering a treatment at different moments in time “t”, i.e., in a staggered setting. Our aim is to estimate the treatment effect of an intervention (the variable “treatment”) on an outcome “Y”. As the units entering the treatment at a given moment (“t”=“g”) might be selective and we do not have enough control variables to control for the difference in composition in a credible way, we want to implement a differencein-differences estimator, which can account for unobserved heterogeneity under the assumption of a parallel trend (in the dataset the variable “g” indicates the moment when an individual enters the treatment, “g” =0 for never treated). Answer the following questions. 1. Provide a table describing the staggered setting: How many never treated units do we have? How many treated units are there by the end of the data observational periods? 2. Estimate the treatment effect by implementing the standard diff-in-diff (two-way fixed effect) estimator, assuming that the parallel trend holds unconditionally and the treatment effect is homogeneous (tip: remember to control for all group levels, keeping the never-treated as the omitted category). What effect do we find? (note, clustering the standard errors by individual identifier produces unreliable SEs due to the few number of units in each cluster – therefore do not cluster the SEs in this exercise) I am using stata

Critically assess the role of Regulators in ensuring the safe, fair and effective operation of financial markets.

Critically assess the role of Regulators in ensuring the safe, fair and effective operation of financial markets.

economics of experence with reference to platforms

economics of scope with reference to platforms

economics of scales with reference to platforms

economics of scales

Drawan Edgeworth Box diagram basedonQ1 and answer the following: a.Do all P.O. allocations belong to core? (show in the diagram) b.Do all Pareto superior allocations to endowment belong to core? c.Do all allocations that are P.O and Pareto Superior to endowment belong to the core?

Idle asset logic

Moral Hazard and Adverse Selction ▪ Please show how asymetric Information can lead to Market Failure. Base your Argumentation on two Examples ( i) moral hazard and ii) adverse selection) from IT-Secto

Monitoring, Reporting, and Closure.

Execution and Quality Assurance.

Project Planning and Initiation

urfaust

what is the biggest challenge the philippines is currently facing

What is the typical job progression for an IT Project Manager?

What is the typical job progression for an IT Project Manager?

IT mnagement

Given that Total Product Q =f(Z1,Z2) where Z1 is labour, Z2 is capital. Proof that Marginal Product = Average Product at the maximum point.

The dinosaur asteroid theory

Give Me Reason Why I Should Buy Stock in San Miguel Corporation?

Give Me Reason Why I Should Buy Stock Im Smart Telecom Inc.

There are N consumers uniformly distributed along a linear city of unit length, served by two shops located at opposite extremities of the city. The two shops sell an identical product, for which consumers have unit demands, and they have identical constant marginal costs of 2 and no fixed costs. The cost to consumers of travelling the length of the city is 4. Suppose one shop only has a marginal cost of 1, but there are no other changes to the setting. Calculate the optimal prices for the shops, and their profits in terms of N.

A kaatoan bangkal plantation will be established to support a pulp and paper mill in Mindanao. At its rotation age of 5 years, the estimated yield is 125m3/ha. The cost of establishment is PhP 20,000/ha. The maintenance and protection cost from the first year until the 5th year is PhP 2,000/ha/year. The stumpage price of kaatoan bangkal is PhP 700/ m3. Using a discount rate of 15% per annum, evaluate the feasibility of the project.

destinationmarketing

) Suppose these are the ticket prices and quantity demanded information for watching a movie in a cinema. :Price ($17.70) – Quantity demanded =280 Price ($17.20) – Quantity demanded =313 question: Calculate the price elasticity of demand using the Mid-Point formula when the price of movie tickets decreased from $17.70 to $17.20. Conclude if the value derived meant price elastic demand or price inelastic demand. [Note: Please use 3 decimal places in your working and answer]

Context: The 4th Quarter GDP for Nowhere has fallen by 3.5% compared to the previous quarter. The downturn was caused by a fall in personal consumption expenditure as foreign tourists avoided visiting Nowhere given the serious flooding situation. This disappointing result was also due to a drastic decline in Nowhere citizens’ travel to nearby countries such as Somewhere, where they typically bulk purchase affordable toiletries, go for hair treatment and even car wash. Nowhere’s healthcare sector was the only sector that kept the GDP figure from further decline. There was a significant increase in the demand for health screening services, thanks to the government’s efforts in raising public awareness of such preventive measures. Nowhere’s official unemployment rate revealed that the labour market remained strong despite the underperforming economy. However, analysts were doubtful of this low rate reported. “More citizens are returning from the city to their rural hometowns within Nowhere to work. It is hard to capture those who work in the rural region. High chance that the unemployment rate is understated.” said Miss Gamora from the Guardian Bank. There were also signs of increasing cyclical unemployment. “We see a trend in furniture manufacturers such as IKEA relocating their factories to Indonesia and India to benefit from the low labour costs.” said Mr. Groot from the Galaxy bank, in a separate interview. Question: The reporter has made FOUR mistakes in his application of economics concepts. Identify his mistakes and explain why he was wrong.

Which statement correctly describes the actual yield and the theoretical yield of a reaction?

2H2 + O2 Right arrow. 2H2O What is the percent yield of H2O if 87.0 g of H2O is produced by combining 95.0 g of O2 and 11.0 g of H2? Use Percent yield equals StartFraction actual yield over theoretical yield EndFraction times 100..

Which statement best describes a mole

Conduct a thorough ratio analysis for Fincare small finance bank

Provide ins Identify the auditing entities or individuals responsible for overseeing the financial operations of Fincare small finance bank

Provide insights into Call and Short Money -specifying-relevant-details-obtained-from-the-annual-report-of-Fincare small finance bank

what is principal component and explain its stages

what is principal component and explain its stages

if we remove the fixed cost part of the cost function in krugman 1979 model then what will happen to the conclusion of the krugman model

A kaatoan bangkal plantation will be established to support a pulp and paper mill in Mindanao. At its rotation age of 5 years, the estimated yield is 125m3/ha. The cost of establishment is PhP 20,000/ha. The maintenance and protection cost from the first year until the 5th year is PhP 2,000/ha/year. The stumpage price of kaatoan bangkal is PhP 700/ m3. Using a discount rate of 15% per annum, evaluate the feasibility of the project. make a cash flow using cba from year 0-5 with npv, sev, bcr, irr, df

Если в мозгу есть нейронные связи, значит наш мозг это нейросеть?

How is sphalerite mined?

quantity of sphalerites in nasarawa state

amount of zinc deposit

Explain the Ricardian equivalence theorem and discuss how the Ricardian equivalence theorem helps us understand the burden of the government debt.

WHAT ARE ECOMONIC EVENTS LIKELY TO HAPPEN THAT WILL MAKE ME PROFITS ON FOREX EXCHANGE

IN 2024 WHAT WILL BE THE BEST STOCK TO BUY TO MAKE MONEY

The consumption of petrol generates considerable externalities and petrol is also a heavily taxed product. It is often quoted as an example of a product with an inelastic price elasticity of demand (PED). Studies in different countries have produced varied results. A South African study in 2004 gave a short-run PED of –0.21 and a long-run PED of –0.51. In 2008 an Australian study put the short-run PED between –0.1 and –0.14 and the long-run PED between –0.2 and –0.3. a. i. Compare the price of petrol in the US and China between January 2008 and September 2009. (2 marks) ii. Indicate how does Fig. 1 confirm that it is in China rather than in the US that the price of petrol is set by the government? (2 marks) b. Explain how the consumption of petrol generates externalities. (4 marks) c. i. Justify two points about the PED of petrol on which the studies agree. (4 marks) ii. Explain why the values of the short-run and long-run PEDs for petrol are different. (4 marks) d. Discuss the possible consequences of the Chinese price setting policy between January 2008 and September 2009. (4 marks)

Create a simple balance sheet for my bank

What does pajeet mean?

suppose that a producer of commodity Y is located on the upstream of river Z. the MC of producing Y is given by the function of MC= 10 – 0.5Y. in addition this MC however an external cost is incurred. each unit of product Y produces a pollutant that flows the river, which causes damage valued at birr 10. suppose that this external cost borne by the wider community rather than the polluted firm. MR obtained from each unit of Y is given by MR= 30-0.5y a) drive the profit maximizing level of output for Y. b) drive the socially optimum level of output for Y. c)explain why the socially efficient level of output lower than the profit maximum level of output of Y

Demand on goods for which consumers spend a ……….. portion of their incomes is …………. * great, perfectly inelastic small, elastic small, unitary elastic great, elastic

If the marginal product is greater than zero and is increasing, then

elling cotton clothes by an Egyptian company located in Alexandria to an Indian importer and payments made by an Egyptian citizen for a tourism trip in Spain are recorded as……………… and ……………. in the balance of payments *

Variable costs exist in * the long run the short run the short run and the long run none of the answers is a right answer