Question
Suppose that the demand curve for steel in France is given by Q=100-2PS+0.5Y+0.2PA, where Q is the quantity of steel demanded per year, PS is
Suppose that the demand curve for steel in France is given by Q=100-2PS+0.5Y+0.2PA, where Q is the quantity of steel demanded per year, PS is the market price of steel, Y is real GDP in France, and PA is the market price of aluminum. In 2003, PS =20, Y=40, and PA =100. What is the price elasticity of demand, given market conditions in 2003?
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Introduction to Behavioral Economics
Authors: David R. Just
1st edition
0470596228, 978-0470596227
