Question
The demand for good X has been estimated to be ln Qxd= 100 2.5 ln PX+ 4 ln PY+ ln M. The cross-price elasticity of
The demand for good X has been estimated to be ln Qxd= 100 2.5 ln PX+ 4 ln PY+ ln M. The cross-price elasticity of demand between goods X and Y is:
2.5 and X and Y are substitutes.
4.0 and X and Y are subsititutes.
2.5 and X and Y are complement.
4.0 and X and Y are elastic
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International Economics
Authors: James Gerber
6th edition
978-0132950145, 132950146, 132948915, 978-0132948913
