Please show work so i can learn how you solved it. Thank you. 18. The cross pric

Question

Please show work so i can learn how you solved it. Thank you.

18. The cross price elasticity of biscotti demand with respect to the price of Lattes is -1.5 (Lattes and biscotti are complementary goods). If the price of Lattes increases 20% what would you expect to happen to biscotti demand?

19. Write your first derivative of the following function in the space on the answer sheet.

                                                Y = 2X2 +5X3 –X +10

20. Write your first derivative of the following function in the space on the answer sheet.

                                                Y = 3X1/3 +4X5/4 -2X2 +10X

Explanation / Answer

18. Cross elasticity of demand of biscotti= (Percentage change in quantity of Biscotti / Percentage change in the price of Lattes)

- 1.5 (20%) = Percentage change in biscotti demand

Percentage decrease in biscotti demand= 30%.

19. Y= 2X2 + 5X3 -X + 10

First derivative of the function is

dY/ dX= 4X + 15X2 -1

20. Y = 3X1/3 + 4X5/4 -2X2 + 10X

First derivative of Y with respect to X is :

dY / dX= 1/3 (3)X-2/3 + (5/4)(4) X1/4 - 4X + 10

= X-2/3 +5X1/4 -4X + 10

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