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Elasticities of Non-Linear Functions Q A D = 3(P A -0.33 )(P s 0.8 )(P c -0.75 )(I 1.1 )is the demand function for good
Elasticities of Non-Linear Functions
QAD = 3(PA-0.33)(Ps0.8)(Pc-0.75)(I1.1)is the demand function for good A,
Where PA is the own price, Ps is the price of a substitute good, Pc is the price of a complementary good and I is income.
- What are the 3 price elasticities? Interpret each one.
- What is the income elasticity? Interpret it.
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