Module 3 Assignment No.

3
1. The demand for good X has been estimated by Q xd = 12 − 3Px + 4Py. Suppose
that good X sells at 2 php per unit and good Y sells for 1 php per unit. Calculate
the own price elasticity.

2. Suppose Q xd = 10,000 − 2 Px + 3 Py − 4.5M, where Px = 100 php, Py = 50 php,

and M = 2,000 php. Compute for the own price elasticity of demand.

3. Suppose the demand function is Q xd = 100 − 8Px + 6Py – M. If Px = 4 php, Py = 2

php, and M = 10 php, determine the cross-price elasticity of good x with respect to
the price of good y.

4. Suppose the demand function is given by Qxd = 10Px0.9 Py0.5 M0.22 H. Calculate the
cross-price elasticity between goods x and y.
5.1 The demand function in the accompanying table is QXd = 100 − 2PX. Based on
this information, when: QX = 80, the price, PX (point A)?

5.2 The demand function in the accompanying table is QXd = 100 − 2PX. Based on
this information,
if Px = 30 php QXd = (point B)?

5.3 The demand function in the accompanying table is QXd = 100 − 2PX. Based on
this information, when: compute the own price elasticity of demand when PX = 25
php (point C)?
5.4 The demand function in the accompanying table is QXd = 100 − 2PX. Compute
the total revenue when QX = 20 (point D)?