Let's say we have a function QA = 10 - 2PA + 4PB + 10INC Where QA is the quantity of good A PA is the price of good A PB is the price of good B INC in your income in 10s of thousands of dollars (e.g., if your income is $30,000 then INC = 3 ) and PA = 2 PB = 6 INC = 2 so that QA = 50 What is the cross price elasticity of Goods A and B
Let's say we have a function QA = 10 - 2PA + 4PB + 10INC Where QA is the quantity of good A PA is the price of good A PB is the price of good B INC in your income in 10s of thousands of dollars (e.g., if your income is $30,000 then INC = 3 ) and PA = 2 PB = 6 INC = 2 so that QA = 50 What is the cross price elasticity of Goods A and B
Chapter4: Utility Maximization And Choice
Section: Chapter Questions
Problem 4.1P
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Question
a. 24/50
b. 50/24
c. 6
d. 4
![Let's say we have a function
QA = 10 - 2PA + 4PB + 10INC
Where
QA is the quantity of good A
PA is the price of good A
PB is the price of good B
INC in your income in 10s of thousands of dollars (e.g., if your income
is $30,000 then INC = 3 )
and
PA = 2
PB = 6
INC = 2
so that QA = 50
What is the cross price elasticity of Goods A and B](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4bbb835f-0057-41b8-a852-8225c6046161%2Fd8eb21aa-4b01-443a-b262-3b15fab580a1%2F96w17dn_processed.png&w=3840&q=75)
Transcribed Image Text:Let's say we have a function
QA = 10 - 2PA + 4PB + 10INC
Where
QA is the quantity of good A
PA is the price of good A
PB is the price of good B
INC in your income in 10s of thousands of dollars (e.g., if your income
is $30,000 then INC = 3 )
and
PA = 2
PB = 6
INC = 2
so that QA = 50
What is the cross price elasticity of Goods A and B
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