In the regional market for housing, demand for single detached homes depends on the price of the house, PH, consumer income, N, and the price of a related good, townhouses, P-. The demand equation is Qd = 0.3N + 0.08PT - 0.02PH. Initially,average consumer income is N= $50,000 and the average price of townhouses is $315,000. Making these substitutions, we get Qd = 40,200 – 0.02PH: This is our current demand equation.Suppose income changes from $50,000 to $60,000. What is the income elasticity of demand for housing when the price is $220,000?Click the icon to view the derivation of the current demand equation.The income elasticity of demand for housing when the price is $220,000 and income changes from $50,000 to $60,000 is EN = |. This isHousing isgood.(Round to two decimal places as needed.)perfectly inelastic.perfectly elastic.inelastic.elastic.unit elastic. In the regional market for housing, demand for single detached homes depends on the price of the house, PH, consumer income, N, and the price of a related good, townhouses, P-. The demand equation is Qd = 0.3N + 0.08PT - 0.02PH. Initially,average consumer income is N= $50,000 and the average price of townhouses is $315,000. Making these substitutions, we get Qd = 40,200 – 0.02PH: This is our current demand equation.Suppose income changes from $50,000 to $60,000. What is the income elasticity of demand for housing when the price is $220,000?Click the icon to view the derivation of the current demand equation.The income elasticity of demand for housing when the price is $220,000 and income changes from $50,000 to $60,000 is EN = |. This isHousing isgood.(Round to two decimal places as needed.)a normalan inferior

Given Initial house demand function Qd= 0.3N+0.08Pt-0.02PH Initially Consumer income N = $50000…

Answered: In the regional market for housing,…

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter3: Supply And Demand: Theory

Section: Chapter Questions

Problem 7QP

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In the regional market for housing, demand for single detached homes depends on the price of the house, PH, consumer income, N, and the price of a related good, townhouses, PT. The demand equation is Qd = 0.1N+0.05PT-0.02PH. Initially, average consumer income is N = $40,000 and the average price of townhouses is $300,000. Making these substitutions, we get Qd = 19,000 -0.02PH. This is our current demand equation. Suppose income changes from $40,000 to $50,000. What is the income elasticity of demand for housing when the price is $230,000? iClick the icon to view the derivation of the current demand equation. The income elasticity of demand for housing when the price is $230,000 and income changes from $40,000 to $50,000 is EN=. This is Housing is good. (Round to two decimal places as needed.) perfectly inelastic. elastic. unit elastic. inelastic. perfectly elastic.
Suppose consumers will demand 55 units of a product when the price is $15.30 per unit and 20 units when the price is $19.30 each. Find the demand equation, assuming that it is linear. Find the price per unit when 35 units are demanded. Find the demand equation, where p is the price per unit and q is the quantity of units demanded. p=] (Simplify your answer.)
In the regional market for housing, demand for single detached homes depends on the price of the house, PH, consumer income, N, and the price of a related good, townhouses, P-. The demand equation is Qda = 0.3N + 0.05PT -0.02PH. Initially, average consumer income is N = $50,000 and the average price of townhouses is $290,000. Making these substitutions, we get Qda = 29,500 - 0.02PH. This is our current demand equation. Suppose N = 50,000 and PH = 230,000. If the price of townhouses decreases from $290,000 to $255,000, what is the cross-price elasticity of demand for housing? i Click the icon to view the derivation of the current demand equation. The cross-price elasticity of demand for housing when N = 50,000, PH = 230,000, and the price of townhouses decreases from $290,000 to $255,000 is Ea b This is Single detached homes and townhouses are (Round to two decimal places as needed.) perfectly elastic. elastic. unit elastic. perfectly inelastic. inelastic.
An economist has estimated that the demand function for cars is approximately D = −400P + 4I where I is the mean household income. The Supply of cars is estimated to be S = 2p (a) What is the equilibrium price of cars (it will be a function of I)?(b) How does the equilibrium price of cars change when I changes?
For a demand function Qd = f (P), a change in price causes a change in the quantity demanded. There are other five (5) variables, enumerate and explain each variable influencing demand in the general demand function. These are fixed at specific values for a given demand equation.
The demand function for potatoes per month is given by Q = 104 – 40p + 20pt + 0.01Y, where Q = the quantity of potatoes, p = price of potatoes, pt = price of tomatoes, and Y = income per month. Pt is currently $0.80 per pound). Derive the demand curve for potatoes from the data provided when income is $4,000 per month. Derive the new demand curve when income increases to $5,000 per month. ON a graph show the change in the demand curve resulting from the growth in income.
Consider the demand function for processed pork in Canada, Q= 171- 20p + 20p, + 3p, + 0.002Y where Q is the quantity of pork demanded (measured millions of kg per year), p is the price of pork, P. is the price of beef, p, is the price of chicken, and Y is the income of consumers. If the price of beef decreases from $4 per kg. to $2.53 per kg., then the demand curve for processed pork will shift to the left by million kg. per year. (Enter a numeric response using a real number rounded to two decimal places.) tv MacBook Air DII DD 80 esc F6 F7 F9 F10 F12 FI F3 @ $ % & 1 2 3 4 6 7 8 de Q W E R T Y P qe A F J K ck ? .. ..
We obtain the following demand curve of beef in a market: = 30302.189-4303.602 In (P), where Q is quantity demanded of beef measured in pounds, P is price measured in dollars per pound. We know P = 8.906 and Q=12027.759. Based on this information, if price increases by 1 dollar, quantity demanded decreases by _%. (Only type in the number in your answer, do not type in the percentage sign "%" again.)
The quantity demanded x for a certain brand of MP3 players is 300 units when the unit price p is set at $100. The quantity demanded is 1300 units when the unit price is $60. Find the demand equation.p =
The price of a widget decreases from $1 to $0.60, and in response to the price change the quantity demanded increases from 7 to 9 units. Therefore, demand for widgets in this price range: (Use the midpoint formula and write your answer in absolute terms, meaning as a positive number)
The quantity demanded of Good Z depends upon the price of Z (Pz), monthly income (Y), and the price of a related Good W (Pw). Demand for Good Z (Qz) is given by equation 1 below: Qz = 150 - 8Pz + 2Y - 15Pw Find the demand equation for Good Z in terms of the price for Z (Pz), when Y is $50 and Pw = $6.
The quantity demanded of Fitbit devices is 8,025 units when the price is $260. At a unit price of $200, demand increases to 10,000 units. The manufacturer will not market any of the device at a price of $100 or less. However for each $50 increase in price above $100, the manufacturer will market an additional 1,000 units. Assume that both the supply equation and the demand equation are linear. a) Find the supply equation. b) Find the demand equation. c) Find the equilibrium quantity. d) Find the equilibrium price.

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