Consider the following demand function for airline tickets (quantities are in thousands): Q = 10-0.1p, + 0.4py + 0.25p, + 0.005Y, where P, = price of an airline ticket Q = quantity demanded P, = price of a bus ticket P2 = price of gasoline Y= consumer income According to the above equation, airline tickets and bus tickets are goods. If, in equilibrium, the cross-price elasticity between airline tickets and gasoline is 1.1; when the price of the gasoline increases by 4%, the quantity demanded of airline tickets increases by% (enter your response rounded to two decimal places).

Consider the following demand function for airline tickets (quantities are in thousands): Q = 10-0.1p, + 0.4py + 0.25p, + 0.005Y, where P, = price of an airline ticket Q = quantity demanded P, = price of a bus ticket P2 = price of gasoline Y= consumer income According to the above equation, airline tickets and bus tickets are goods. If, in equilibrium, the cross-price elasticity between airline tickets and gasoline is 1.1; when the price of the gasoline increases by 4%, the quantity demanded of airline tickets increases by% (enter your response rounded to two decimal places).

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter5: Markets In Motion And Price Controls

Section: Chapter Questions

Problem 10P

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Consider the following demand function for airline tickets (quantities are in thousands): Q = 10 -0.1p, + 0.4p, +0.25p, + 0.005Y, where P, = price of an airline ticket Q = quantity demanded Py = price of a bus ticket P2 = price of gasoline Y = consumer income According to the above equation, airline tickets and bus tickets are goods. étv Teach Me MacBook Air 80 DII DD esc F2 F3 F4 F7 F8 F9 F10 ! @ $ & 1 2 3 4 5 7 8 { Q W E T Y P tab A K このエ
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