Comments on: Cross Price Elasticity of Demand? http://www.golfblob.com/golf-balls/cross-price-elasticity-of-demand/ Your Questions, Our Answers Thu, 17 May 2012 09:00:48 +0000 http://wordpress.org/?v=2.2.1 By:   Jurij-EU   Ω² http://www.golfblob.com/golf-balls/cross-price-elasticity-of-demand/#comment-2885   Jurij-EU   Ω² Mon, 21 Dec 2009 02:29:50 +0000 http://www.golfblob.com/golf-balls/cross-price-elasticity-of-demand/#comment-2885 Qd = Qs Qd = 90 - 2P - 2T Qs = -9 + 5P - 2.5R R = 2 T = 10 Qd = 90 - 2P - 2x10 = 70 - 2P Qs = -9 + 5P - 2.5x2 = 5P - 14 5P - 14 = 70 - 2P 84 = 7P P = 12 Qs = Qd = 70 - 2x12 = 5x12 - 14 = 46 Exd(T) = (∂Qd/∂T) x (T/Qd) ∂Qd/∂T = -2 T = 10 Exd(T) = -2 x 10 / Qd = -20/46 = -10/23 ≈ -0.43478 Exs(R) = (∂Qs/∂R) x (R/Qs) = -2.5x2/46 ≈ -0.1087 Es = (∂Qs/∂P) x P/Qs = 5x12/46 ≈ 1.3043 Ed = (∂Qd/∂P) x P/Qd = -2x12/46 ≈ -0.5217 Qd = Qs
Qd = 90 - 2P - 2T
Qs = -9 + 5P - 2.5R
R = 2
T = 10
Qd = 90 - 2P - 2×10 = 70 - 2P
Qs = -9 + 5P - 2.5×2 = 5P - 14
5P - 14 = 70 - 2P
84 = 7P
P = 12
Qs = Qd = 70 - 2×12 = 5×12 - 14 = 46

Exd(T) = (∂Qd/∂T) x (T/Qd)
∂Qd/∂T = -2
T = 10
Exd(T) = -2 x 10 / Qd = -20/46 = -10/23 ≈ -0.43478

Exs(R) = (∂Qs/∂R) x (R/Qs) = -2.5×2/46 ≈ -0.1087

Es = (∂Qs/∂P) x P/Qs = 5×12/46 ≈ 1.3043
Ed = (∂Qd/∂P) x P/Qd = -2×12/46 ≈ -0.5217

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