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Section 2: Elasticity (3 points each) 9. Assume an individual has preferences of the form (x,x2) = (3.x - 2) x2 . What is his
Section 2: Elasticity (3 points each) 9. Assume an individual has preferences of the form (x,x2) = (3.x - 2) x2 . What is his Cross-Price Elasticity of Demand with respect to Good 2 assuming the individual is currently consuming both goods (in other words, we are not at a corner solution)? Hint: If you derived your demand curves from Question 8, this is the same utility function.p0 A ExZ.P1 = 0 1 B. ExZ.PI 3pz C. ExZ.PI E 31 - PI P1 D. ExZ.PI 3P2 1 9P2 XT 9PZ E. ExZ.PI 4P1 Pz 4P1
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