The coconut oil demand function is Q=1,200-9.5PC+16.2Pp+0.2M where Q is the quantity of coconut… 1 answer below »


The coconut oil claim part is Q=1,200-9.5PC+16.2Pp+0.2M where Q is the aggregate of coconut oil claimed in thousands of metric tons per year, PC is the compensation of coconut oil in cents per pulverize, Pp is the compensation of crown oil in cents per pulverize, and M is the allowance of consumers. Assume that PC is initially 45 cents per pulverize, Pp is 31 cents per pulverize and Q is 1,275 thousand metric tons per year.
a. Consider the allowance elasticity of claim for coconut oil. (If you do not enjoy all the gum requisite to consider numerical answers, transcribe your answers in stipulations of variables.)
b. Consider the cross-compensation elasticity of claim for coconut oil. (If you do not enjoy all the gum requisite to consider numerical answers, transcribe your answers in stipulations of variables.)