The 27 demand curve for a product is given by QXd = 1,200 - 3PX - 0.1PZ where Pz = $300.

a. What is the own price elasticity of demand when Px = $140? Is demand elastic or inelastic at this price? What would happen to the firms revenue if it decided to charge a price below $140?

Instruction: Enter your response rounded to two decimal places.

Own price elasticity:

Demand is:

(Click to select)

If the firm prices below $140, revenue will:

(Click to select)

b. What is the own price elasticity of demand when Px = $240? Is demand elastic or inelastic at this price? What would happen to the firms revenue if it decided to charge a price above $240?

Instruction: Enter your response rounded to one decimal place.

Own price elasticity:

Demand is:

(Click to select)

If the firm prices above $240, revenue will:

(Click to select)

c. What is the cross-price elasticity of demand between good X and good Z when Px = $140? Are goods X and Z substitutes or complements?

Instruction: Enter your response rounded to two decimal places.

Cross-price elasticity:

Goods X and Z are:

(Click to select)