# Questions tagged [demand]

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### The weekly demand for Kelewele among the 2019 cohort of BSc Admin students at the UGBS is 𝑄𝑑𝑥 = 500 − 5𝑃𝑥 + 0.5𝐼 + 10𝑃𝑦 − 2𝑃 𝑧

The weekly demand for Kelewele among the 2019 cohort of BSc Admin students at the UGBS is 𝑄𝑑𝑥 = 500 − 5𝑃𝑥 + 0.5𝐼 + 10𝑃𝑦 − 2𝑃 𝑧
15 views

### Deadweight loss from a linear demand function [closed]

If I have a linear demand function: x = a - bp How do the values of a and b affect the deadweight loss of a commodity tax?
29 views

### Question about the relationship between Weak Axiom and Slutsky Matrix

We know that if a differentiable Walrasian demand function $x(p,w)$ satisfies Walras' law ($p^Tx=w$), homogeneity of degree zero ($x(\alpha p,\alpha w)=x(p,w)$), and the weak axiom of revealed ...
33 views

### How can I prove $∇U(x).D_m x(p,m)= \text{shadow price}$?

Why inner multiplication of the gradient of utility function in derivative of demand function with respect to income is equal to shadow price? This is the equation which is given but I don't know ...
245 views

### Finding demand functions for an unusual utility function

I have a utility function: $U = x + \min\{x,y\}$ I want to draw the indifference curve and find the demand functions. Will it be the case of the usual perfect complements? Also, what preferences ...
37 views

### Why income elasticity of demand of luxury good in greater than 1?

According to textbook and wikipedia, "if income elasticity of demand of a commodity is less than 1, it is a necessity good. If the elasticity of demand is greater than 1, it is a luxury good or a ...
198 views

### Difference between Engel curve and income expansion path

I was scrolling through many questions on this site about income offer path and it appeared to me that income offer path, income expansion path, engel curve all are different terms with same meaning, ...
13 views

### How does investment lead to generation of jobs?

I quote from India's Economic Survey 2019 (an official document) - While the claim is often made that investment displaces jobs, this remains true only when viewed within the silo of a specific ...
53 views

### Does investment directly influence demand?

I quote from the first page of India's Economic Survey 2019 (an official document) - Investment, especially private investment, is the “key driver” that drives demand, creates capacity, ...
24 views

### Effect of a change in quality on price elasticity of demand

I am interested to know how one would expect a change in the quality of a product to affect its price elasticity of demand. Two example will illustrate my confusion: Example 1 Suppose a producer is ...
37 views

### Should a Price Elasticity of Demand model exclude items that sold out or marked down from the original price

Consider a Price Elasticity of Demand model built with linear regression to estimate the Percent Change in Quantity Demanded given a Percent Change in Price specifically for specialty items which have ...
37 views

### Aggregated demand of households given utility function

I have an utility function given, $\ u_j(q_{j1},q_{j2} )=q^{3/4}_{1j}*q^{1/4}_{2j}$ $\ s.t.: y=p_1*q_{1i} +p_2*q_{2i}$ I do know that the for $\ q_{1j}$ the marginal prospensity to consume is 3/...
35 views

### Intermediate demand vs. Intermediate consumption

I am trying to understand what's the difference between intermediate consumption and intermediate demand. The context is the European System of Accounts, which says that intermediate demand is the ...
36 views

### Afriat theorem for negative goods

GARP and Afrait theorem assume that the alternative $x\in\mathbb R_+$ is always positive. In some economic contexts, such as financial choices, the attribute can be negative. I wonder if we can ...
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### Homogeneity in Marshallian demand function

I have worked out the expenditure function for a Marshallian demand function, R represents a fixed cost and the questions asks about why the expenditure function is unusual. The answer explains it is ...
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### Can there be a good which has both Hicksian and Marshallian demand curves vertical?

Consider a perfectly inelastic (Marshallian) demand curve for a good X. Does this good also have a vertical Hicksian demand curve?
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I have been asked to perform some studies about the price elasticity of demand of an online seller. The concept of elasticity used by economists are more clear to me after some research on ...
I derived demand, given a Cobb-Douglas utility function but I am not really sure if I did it correctly. I am especially struggling with the sum signs and the subscripts of $i$ & $j$. It would be ...
Consider the following simple linear demand system (in vector notation) with n different products Demand: $\quad\mathbf{q=B\left(a-p\right)}$ Inverse demand: $\quad\mathbf{p=a-B^{-1}q}$ where \$\...