Question
If the demand function is Q A = 16 - P A + 2P B - 4P C and we have P A = 2,
If the demand function is QA = 16 - PA + 2PB - 4PC and we have PA = 2, PB = 5, PC = 1 What is the cross-price elasticity of demand with respect to good B? Are A and B substitutes or complements?
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Managerial Economics A Problem Solving Approach
Authors: Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
4th edition
1305259335, 978-1305259331
