Question
1) Suppose the demand for grapes is Q_D = 20-2*P_G-4*P_O where P_G is the price of grapes and P_O is the price of oranges. At
1) Suppose the demand for grapes is Q_D = 20-2*P_G-4*P_O where P_G is the price of grapes and P_O is the price of oranges. At P_G = $1 and P_O = $1, what is the cross-price elasticity of demand for grapes with respect to oranges?
2) Suppose the demand for grapes is Q_D = 20-2*P_G-4*P_O where P_G is the price of grapes and P_O is the price of oranges. Suppose at P_G = $2 that 8 units of grapes are sold (Q_D).What is the price of oranges (P_O)?
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Microeconomics
Authors: Austan Goolsbee, Steven Levitt, Chad Syverson
2nd edition
1464187029, 978-1464189104, 1464189102, 978-0716759751, 716759756, 978-1464187025
