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With the aid of graph. Explain how time affects elasticity of supply.

(b) Given the hypothetical demand function as QX =100 -5PX +0.1Y -20PY

Whereby:

QX = Monthly expenditures per Household kgs of meat.

PY = Price per kg of chicken. = 4000 Tshs.

PX = Price per kg of Meats. = 5000 Tshs.

Y = Monthly House Hold Income. 150,000 Tshs.

REQUIRED:

(i) Interpret the parameter?s estimate.

(ii) At the stated values of the variables above, Calculate the weekly expenditures.

(iii) Re-write the demand equation.

(iv) Calculate the cross, price and income elasticity of demand

Above answer is solution of (a) part

Note:for(b) remaining part post the thread again and get quick assistnace from our expert.

Regrads

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