Suppose the market demand for dolls is given by the following equation: Qd = 100 -...

Suppose the market demand for dolls is given by the following equation:

Qd = 100 - 1.5xP + 0.6xP(sub) - 0.4xP(comp) + 8xInc, where Qd = number of units (dolls) demanded per period P = price per doll P(sub) = the price of a substitute good P(comp) = the price of a complement good Inc = an index of consumers income At present P = $10, P(sub) = $5, P(comp) = $15, & Inc = 41. As a result the income elasticity of demand is equal to:

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Rahul Sunny answered 1 year ago

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