Given the following demand function:
Q = 2.0 P-1.33 Y2.0 A0.66
Q = quantity demanded (thousands of units)
P = price ($/unit)
Y = disposable income per capita ($ thousand)
A = advertising expenditures ($ thousand)
Determine the following when P = $2/unit, Y = $8 (i.e., $8000), and A = $25 (i.e., $25,000)
The percentage increase in demand if disposable income percentage increases by 3%.
This question belongs to micro economics and discusses about percentage increase in demand if disposable income percentage increases
Total Word Count 15
Download Full Solution
If you are here for the first time, you can request for a discount coupon, which can knock off upto 20% of the quoted price on any service.