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Satsume Satsume
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6 years ago
The following table gives the current price, quantity, and price elasticities of the linear demand curves for pencils, paper and scissors.   The columns Erc under the Price Elasticities heading are calculated as Erc = ( ) .   The terms r and c refer to the row of the table and the column under the price elasticities heading, respectively.  For example, if r is one and c is two, the value E12 is the responsiveness of pencil demand to changes in the paper price (i.e., a cross-price elasticity).  The demand curves for each good are in the form Qr = ar + brP1 + crP2 + drP3 .  Using the information in the table, derive the demand curve for each good.

   Price Elasticities
Demand Item   Own Price   Quantity   Er1   Er2   Er3
Pencils   0.35   25,000   -1.2   0.25   0
Paper   2.00   90,000   0.01   -0.85   0.45
Scissors   3.15   1,500   0   1.20   -1.75
Textbook 
Microeconomics

Microeconomics


Edition: 8th
Author:
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boransalboransal
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6 years ago
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Satsume Author
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6 years ago
Thank you, thank you, thank you!
terriroberts96
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Yesterday
Good timing, thanks!
erimis
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2 hours ago
Thanks
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