Question
13) The demand and supply for good x are respectively QD = 24 - 2Px + Py/2 and QS = 4Px - 10 with QD
13) The demand and supply for good x are respectively QD = 24 - 2Px + Py/2 and QS = 4Px - 10 with QD denoting the quantity demanded for good x, QS the quantity supplied for good x, Px the price for good x, and Py the price for good y a substitute to good x. Suppose Py = 4. Determine the cross-price elasticity of demand at the equilibrium.
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Economics Principles and Policy
Authors: William J. Baumol, Alan S. Blinder
12th edition
978-0538453677, 538453672, 978-0538453622, 538453621, 978-0538453653
