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Business, 14.02.2020 19:33 jeffersonpaul283

The coconut oil demand function (Bushena and Perloff, 1991) is Q = 200-9.5p +16.2p/0.2Y, where Q is the quantity of coconut oil demanded in thousands of metric tons per year, p is the price of coconut oil in cents per pound, p/p is the price of palm oil in cents per pound, and Y is the income of consumers. Assume that p is initially 45cents per pound, p/p is 23 cents per pound, and Q is 1,275 thousand metric tons per year. Calculate the income elasticity of demand for coconut oil.

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The coconut oil demand function (Bushena and Perloff, 1991) is Q = 200-9.5p +16.2p/0.2Y, where Q is...

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