Suppose the demand curve for a product is given by Q= 17- 2P + 1Ps where P is the price of the product and Pg is the price of a substitute good. The price of the substitute good is $2.40. Suppose P = $0.50. The price elasticity of demand is -.05. (Enter your response rounded to two decimal places.) The cross-price elasticity of demand is .13. (Enter your response rounded to two decimal places.) Suppose the price of the good, P, goes to $1.00. Now the price elasticity of demand is (Enter your response rounded to two decimal places.)

Suppose the demand curve for a product is given by Q= 17- 2P + 1Ps where P is the price of the product and Pg is the price of a substitute good. The price of the substitute good is $2.40. Suppose P = $0.50. The price elasticity of demand is -.05. (Enter your response rounded to two decimal places.) The cross-price elasticity of demand is .13. (Enter your response rounded to two decimal places.) Suppose the price of the good, P, goes to $1.00. Now the price elasticity of demand is (Enter your response rounded to two decimal places.)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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