PB PA and qB = 3 PA PB The demand equations for related products A and B are given by A 26 prices (in dollars) per unit. (a) Find the values of the two marginal demands for product A when PA = 4 and PB = 25. (b) If PB is reduced to 23 from 25, with PA fixed at 4, use part (a) to estimate the corresponding change in demand for product A. where qÃ and q are the quantities of A and B demanded, and PA and PB are the corresponding

PB PA and qB = 3 PA PB The demand equations for related products A and B are given by A 26 prices (in dollars) per unit. (a) Find the values of the two marginal demands for product A when PA = 4 and PB = 25. (b) If PB is reduced to 23 from 25, with PA fixed at 4, use part (a) to estimate the corresponding change in demand for product A. where qÃ and q are the quantities of A and B demanded, and PA and PB are the corresponding

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The demand equations for related products A and B are given by q = 26
PB
√PA
and q = 3
PA
, where qÅ and q are the quantities of A and B demanded, and PA and PB are the corresponding
PB
prices (in dollars) per unit.
(a) Find the values of the two marginal demands for product A when PA = 4 and PB = 25.
(b) If PB is reduced to 23 from 25, with PA fixed at 4, use part (a) to estimate the corresponding change in demand for product A.

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