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

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

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Chapter1: Making Economics Decisions

Section: Chapter Questions

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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

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