Question
Suppose Q x d = 10,000 2 P x + 3 P y 4.5M, where P x = $100, P y = $50, and M
Suppose Q xd = 10,000 2 Px + 3 Py 4.5M,
where Px = $100, Py = $50, and M (income) = $2,000.
(a) What is the own price elasticity of demand? Please show your calculations.
(b) What is the cross price elasticity between good X and good Y? Please show your
calculations.
(c) What is the income elasticity of demand? Please show your calculations.
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Economics
Authors: Campbell R. McConnell, Stanley L. Brue, Sean M. Flynn
18th edition
978-0077413798, 0-07-336880-6, 77413792, 978-0-07-33688, 978-0073375694
