Question: the demand for haddock fish has been estimated to be...
The demand for haddock (fish) has been estimated to be
Log Q = .769 – 2.174Log P + 0.461Log I +1.909LogPm
Where Q = quantity fish demanded
P = price of fish
I = income of consumes
Pm an index of prices of meat and poultry
Log is another way of writing natural log
1)What is the numerical value of the price elasticity of demand? Is fish demand elastic or inelastic?
2)What is the numerical value of the income elasticity of demand? Is fish an inferior or superior good?
3)What is the numerical value of the cross price elasticity of demand? In this case are meat and poultry a substitute or a complement to fish?
4)Suppose income of consumers is expected to increase 5% next year. Assuming all other factors stay the same, forecast the percentage change in the quantity of fish demanded next year.