7.8 Show that for a two-good world, sX eX,PX sY eY,PX sX. If the own-price elasticity...
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7.8 Show that for a two-good world, sX eX,PX sY eY,PX sX.
If the own-price elasticity of demand for X is known, what do we know about the cross-price elasticity for Y ? (Hint: Begin by taking the total differential of the budget constraint and setting dI 0 dPY.)
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Related Book For
Microeconomic Theory Basic Principles And Extensions
ISBN: 9780324270860
9th Edition
Authors: Walter Nicholson
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