Question
The demand for company X's product is given by Q x = 12 - 3P x + 4P y . Suppose good X sells for
The demand for company X's product is given by Qx = 12 - 3Px + 4Py. Suppose good X sells for $3.00 per unit and good Y sells for $1.50 per unit.
A. Calculate the cross-price elasticity of demand between goods X and Y at the given prices.
B. What is the own-price elasticity of demand at these prices?
Please show work.
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Microeconomics
Authors: Paul Krugman, Robin Wells
3rd edition
978-1429283427, 1429283424, 978-1464104213, 1464104212, 978-1429283434
