Question
3. Suppose the demand curve for a product is given by Q = 10 - 2P + PS where P is the price of the
3. Suppose the demand curve for a product is given by Q = 10 - 2P + PS where P is the price of the product and PS is the price of a substitute good. The price of the substitute good is $2.00. a. Suppose P = $1.00. What is the price elasticity of demand? What is the cross-price elasticity of demand? b. Suppose the price of the good, P, goes to $2.00. Now what is the price elasticity of demand? What is the cross-price elasticity of demand?
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Puzzle Of Latin American Economic Development
Authors: Patrice Franko
2nd Edition
0742524663, 9780742524668
