6) Suppose a consumer's demand function is x(p) =100-3p.a. What's the general equation for the own-price elasticity of demand for this consumer?b. What's the price elasticity of demand when p=25?c. Suppose instead that the demand function is (PP) = 100-3px +Py. How does the equation for own-price elasticity change?d. Continue with the demand equation in (c). Suppose p=25. What's the cross-price elasticity for x? e. Continuing with part (d), what's the cross-price elasticity when the price of y is equal to 50?

6) Suppose a consumer's demand function is x(p) =100-3p.a. What's the general equation for the own-price elasticity of demand for this consumer?b. What's the price elasticity of demand when p=25?c. Suppose instead that the demand function is (PP) = 100-3px +Py. How does the equation for own-price elasticity change?d. Continue with the demand equation in (c). Suppose p=25. What's the cross-price elasticity for x? e. Continuing with part (d), what's the cross-price elasticity when the price of y is equal to 50?

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter20: Elasticity: Demand And Supply

Section: Chapter Questions

Problem 13E: Using the following equation for the demand for a good or service, calculate the price elasticity of...

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