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Suppose the demand curve for a product is given by Q=20-1P +2PS where P is the price of the product and P is the price
Suppose the demand curve for a product is given by Q=20-1P +2PS where P is the price of the product and P is the price of a substitute good. The price of the substitute good is $2.50. Suppose P=$0.90. The price elasticity of demand is -0.04 . (Enter your response rounded to two decimal places.) The cross-price elasticity of demand is 0.21 . (Enter your response rounded to two decimal places.) Suppose the price of the good, P, goes to $1.80. Now the price elasticity of demand is - 0.08 . (Enter your response rounded to two decimal places.) The cross-price elasticity of demand is 0.42 . (Enter your response rounded to two decimal places.)
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