Now suppose that demand curves for apple in Brooklyn are given by the following demand function: Qa = 50 - 12P+ 6Ps+0.00

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Now Suppose That Demand Curves For Apple In Brooklyn Are Given By The Following Demand Function Qa 50 12p 6ps 0 00 1 (72.96 KiB) Viewed 23 times

Now suppose that demand curves for apple in Brooklyn are given by the following demand function: Qa = 50 - 12P+ 6Ps+0.001Y where Qa: quantities demanded in tons P: price of apple in dollars per kg Ps: price of pear in dollars per kg Y: average monthly income in dollar 3) What is the income elasticity of demand if Qd=100 and Y = $5000 at the competitive equilibrium? Explain the elasticity result and based on the result you have explain what type of good apple is? 4) What is the cross-price elasticity of demand if Qd= 30 and Ps = $4.00 at the competitive equilibrium? Explain the elasticity result and based on the result you have explain what type of goods apple and pear are?