Calculate the price and cross-price elasticities of demand for coconut oil. The coconut oil demand …

Calculate the price and cross-price elasticities of demand for coconut oil. The coconut oil demand function (Buschena and Perloff, 1991) is Q = 1200 - 9.5p + 16.2pp + 0.2Y, where Q is the quantity of coconut oil demanded in thousands of metric tons per year, p is the price of coconut oil in cents per pound, pp is the price of palm oil in cents per pound, and Y is the income of consumers. Assume that p is initially 45¢ per pound, pp = 31¢ per pound, and Q = 1,275 thousand metric tons per year. (Hint: dQ/dp = -9.5 and dQ/dpp = 16.2.)

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Видео Calculate the price and cross-price elasticities of demand for coconut oil. The coconut oil demand … канала mike perez