Question
The demand curve for a product is given by Q X d = 1,200 - 3P X - 0.1P Z where P z = $300.
The demand curve for a product is given by QXd= 1,200 - 3PX- 0.1PZwherePz= $300.
What is the own price elasticity of demand whenPx= $140? Is demand elastic or inelastic at this price? What would happen to the firm's revenue if it decided to charge a price below $140?
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Managerial Economics A Problem Solving Approach
Authors: Luke M. Froeb, Brian T. McCann
1st Edition
0324359810, 9780324359817
