Suppose the demand curve for a product is given by Q=14-2P+3Ps where P is the price of the product and Ps is the price of a substitute good. The price of the substitute good is $2.30. Suppose P = $0.50. The price elasticity of demand is -0.05. (Enter your response rounded to two decimal places.) The cross-price elasticity of demand is (Enter your response rounded to two decimal places.)

Suppose the demand curve for a product is given by Q=14-2P+3Ps where P is the price of the product and Ps is the price of a substitute good. The price of the substitute good is $2.30. Suppose P = $0.50. The price elasticity of demand is -0.05. (Enter your response rounded to two decimal places.) The cross-price elasticity of demand is (Enter your response rounded to two decimal places.)

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter5: Elastic And Its Application

Section: Chapter Questions

Problem 7PA: Suppose that your demand schedule for pizza is as follows: a. Use the midpoint method to calculate...

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