Suppose the demand for pork is given by the equation
Q = p-0.5pc0.2
where pc is the price of chicken. Compute the cross-price elasticity of demand for pork
The partial derivative of quantity w.r.t to the price of chicken is:
∂Q/∂pc = 0.2p-0.5pc-0.8
The cross-price elasticity is then
E = 0.2p-0.5pc- 0.8 ? pc/(p-0.5pc0.2 ) = 0.2
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If national laws protecting the health and safety of workers completely eliminate any and all risk, then
A) more people would be employed. B) workers in risky occupations become better off. C) compensating differentials would grow because workers could not be compensated by being given lower risk jobs. D) compensating wage differentials disappear and workers in risky occupations may be no better off.
Refer to the above figure. Which panel best demonstrates the demand curve?
A) Panel A B) Panel B C) Panel C D) Panel D
The supply of labor is determined by the:
A. number of workers. B. opportunity cost of hiring labor. C. marginal product of labor. D. All of these statements are true.
When there is an inflationary gap there is
A. too much spending and taxes should be raised. B. too much spending and taxes should be lowered. C. too little spending and taxes should be raised. D. too little spending and taxes should be lowered.