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Math Help - Microeconomics - Elasticity - price, incomes, cross, analysis

  1. #1
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    Microeconomics - Elasticity - price, incomes, cross, analysis

    Hello I need your help as soon as possible with this excercise. I tried to do it many times but for me it seems to be impossible (few data?) But I want to ask you if you see maybe a solution.

    Demand function:
    Qs = ((200-2*Ps)(Pt-Pu))/(10*I)

    Data:
    Four days ago:
    price for S was 45 $.
    For good T was 25 $
    for a good U was 10 $.
    Income was 10 $.

    Calculate:
    - Price elasticity of the demand for good S four days ago.
    - Income elasticity of the demand for good S four days ago.
    - cross elasticity of the demand for good S in relation to prices of goods T and U.
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  2. #2
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    Re: Microeconomics - Elasticity - price, incomes, cross, analysis

    Wow, I found my question and now I know the answer. You just need to take all of the factors like were shows above but if you i.e. want to count income elasticity you have to manipulate "I" factor (just check it with different substituted numbers like 7,9,13 and then we could count it with income elasticity formula comparing results.

    Hope it'll help somebody.
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  3. #3
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    Re: Microeconomics - Elasticity - price, incomes, cross, analysis

    Can you give me an example ? thank you
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