[SOLVED] Economics Price Elasticity
See attached MemoUse the elasticity information to calculate by how much, subscription, revenue , cost and profit increase/decrease for favored/basic and the overall effect on the company profit.Please use the following regression results for your analysis:1. Favored TVQ = -8.882+1.793*ln(Income)2. BASICQ = 11.988-0.207Ln (Income)Use the above demand equations ( expressed in log) to get income elasticity and analyze the case.TC = VC +FCProfit = TR -TCAttach both your reply to the memo and your work before you hit submit.
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