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Assignment_Module 3

The document outlines a series of assignments related to calculating price elasticity and demand functions for goods X and Y. It includes specific equations and scenarios to compute own price elasticity, cross-price elasticity, and total revenue based on given prices and quantities. The assignments require applying economic principles to analyze the relationships between price changes and demand for the goods.

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trollihugs
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2 views

Assignment_Module 3

The document outlines a series of assignments related to calculating price elasticity and demand functions for goods X and Y. It includes specific equations and scenarios to compute own price elasticity, cross-price elasticity, and total revenue based on given prices and quantities. The assignments require applying economic principles to analyze the relationships between price changes and demand for the goods.

Uploaded by

trollihugs
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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Assignment: Module 3 Part 1

1. The demand for good X has been estimated by Q xd = 12 − 3Px + 4Py. Suppose
that good X sells at 2 php per unit and good Y sells for 1 php per unit. Calculate
the own price elasticity.

2. Suppose Q xd = 10,000 − 2 Px + 3 Py − 4.5M, where Px = 100 php, Py = 50 php,


and M = 2,000 php. Compute for the own price elasticity of demand.

3. Suppose the demand function is Q xd = 100 − 8Px + 6Py – M. If Px = 4 php, Py =


2 php, and M = 10 php, determine the cross-price elasticity of good x with respect
to the price of good y.

4. Suppose the demand function is given by Qxd = 10Px0.9 Py0.5 M0.22 H. Calculate
the cross-price elasticity between goods x and y.
5.1 The demand function in the accompanying table is QXd = 100 − 2PX. Based on
this information, when: QX = 80, the price, PX (point A)?

5.2 The demand function in the accompanying table is QXd = 100 − 2PX. Based on
this information,
if Px = 30 php QXd = (point B)?

5.3 The demand function in the accompanying table is QXd = 100 − 2PX. Based on
this information, when: compute the own price elasticity of demand when P X = 25
php (point C)?
5.4 The demand function in the accompanying table is QXd = 100 − 2PX. Compute
the total revenue when QX = 20 (point D)?
Module 3 Part 2

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