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The demand function for tickets to Ireland is expressed as Qd = 1600 - 0.005P + 2PEngland + 3rain + ...

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The demand function for tickets to Ireland is expressed as Qd = 1600 - 0.005P + 2PEngland + 3rain + ...

The demand function for tickets to Ireland is expressed as Qd = 1600 - 0.005P + 2PEngland + 3rain + 2Y, where P is the price for tickets to Ireland, PEngland is the price of tickets to England, rain is the inches of rain Ireland receives annually, and Y is annual household income. Assuming PEngland is $1000, rain is 30 inches per year, and income is 40,000, how much would the price of tickets to Ireland have to fall for consumers to be willing to buy one more trip per year?
A) $15
B) $20
C) $50
D) $200

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Microeconomics

Edition: 8^th

Author: Perloff

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