Imagine you are the owner of a farm that grows and sells kilograms of corn, which can be modeled after a perfect competition market. You know that there are 1,000,000 consumers in the market for corn and that they each have a demand function for kilograms of corn (x) below. You also know that you are one of 1,000 farms that each have the supply function for kilograms of corn (q) per hour below:
x=10–0.25Px +3I+4Py
q = 40 + 0.5 Px – 4 PL + 400 K
a. Calculate the income elasticity of market demand for corn. What does this mean economically? Is this normal or inferior?
b. Calculate the (own) price elasticity of market demand for corn. What does this mean economically? Is this elastic or inelastic?
c. Calculate the cross-price elasticity of market demand for corn. What does this mean economically? Is this a substitute or a complement?
Answers: 1
Another question on Business
Business, 22.06.2019 00:30
What are six resources for you decide which type of business to start and how to start it?
Answers: 3
Business, 22.06.2019 07:00
Amarket that consists of all possible consumers regardless of their specific needs or wants is a
Answers: 1
Business, 22.06.2019 14:30
Which of the following is an example of a positive externality? a. promoting generic drugs would benefit people. b. a lower inflation rate would benefit most consumers. c. compulsory flu shots for all students prevents the spread of illness in the general public. d. singapore has adopted a comprehensive savings plan for all workers known as the central provident fund.
Answers: 1
Business, 22.06.2019 17:00
Dan wants to start a supermarket in his hometown, and wants to get into the business only after finding out about the market and how successful his business might be. the best way for dan to gain knowledge is to:
Answers: 2
You know the right answer?
Imagine you are the owner of a farm that grows and sells kilograms of corn, which can be modeled aft...
Questions
Mathematics, 24.09.2019 05:30
Mathematics, 24.09.2019 05:30
Mathematics, 24.09.2019 05:30
Mathematics, 24.09.2019 05:30
Mathematics, 24.09.2019 05:40
Social Studies, 24.09.2019 05:40
Chemistry, 24.09.2019 05:40
