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Microeconomics, point elasticity of demand

 
 
Reply Sat 20 May, 2017 11:42 am
Hey guys can you help me. The following demand function has been estimated for Fantasy Pinball machines:

QD = 3,500 – 40P + 17.5Px + 670U + 9A + 6,500N

Where P = monthly rental price of Fantasy Pinball machines
Px = monthly rental price of Old Chicago pinball machines (a competitor) U = current unemployment rate in the 10 largest metropolitan areas A = advertising expenditures for Fantasy Pinball machines in thousands of dollars N = fraction of the US population between 10 and 30

a) What is the point elasticity of demand with respect to Fantasy Pinball machines when P = $150, Px= $100, U=0.12, A = $200,000 and N = .35?
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Type: Question • Score: 0 • Views: 1,232 • Replies: 1
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ekename
 
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Reply Sat 20 May, 2017 09:20 pm
@gintare9,
https://www.youtube.com/watch?v=K5CHS-ga0Xc
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