Find the price elasticity of demand at the equilibrium price and quantity. (f) (5 points) What is the price markup over marginal cost. What gives the firm the ability to set prices well above marginal cost? (g) (5 points) Suppose that we can disaggregate the demand function to capture the price of gaming consoles. Let Pc be the price of game consoles and Pv the price of video games as defined above. The equation can be expressed as: Qv = 100 2Pv 1 16 Pc (3) Let the average price of consoles be $320 so that 320/16 = 20 and we get back the original demand function. Find the cross-price elasticity of demand with respect to game consoles. Use values as derived in part b to complete this question. What does the cross elasticity value tell us about the relationship between video games and consoles