The demand curve for a product is given by QXd = 1,200 - 3PX - 0.1PZ where Pz = $300. a. What is the own price elasticity of demand when Px = $140? Is demand elastic or inelastic at this price? What would happen to the firm’s revenue if it decided to charge a price below $140? Instruction: Enter your response rounded to two decimal places. Own price elasticity: Demand is: (Click to select) elastic inelastic If the firm prices below $140, revenue will: (Click to select) increase not change decrease b. What is the own price elasticity of demand when Px = $240? Is demand elastic or inelastic at this price? What would happen to the firm’s revenue if it decided to charge a price above $240? Instruction: Enter your response rounded to one decimal place. Own price elasticity: Demand is: (Click to select) inelastic elastic If the firm prices above $240, revenue will: (Click to select) decrease not change increase c. What is the cross-price elasticity of demand between good X and good Z when Px = $140? Are goods X and Z substitutes or complements? Instruction: Enter your response rounded to two decimal places. Cross-price elasticity: Goods X and Z are: (Click to select) substitutes complements
The
a. What is the own
Instruction: Enter your response rounded to two decimal places.
Own price elasticity:
Demand is: (Click to select) elastic inelastic
If the firm prices below $140, revenue will: (Click to select) increase not change decrease
b. What is the own price elasticity of demand when Px = $240? Is demand elastic or inelastic at this price? What would happen to the firm’s revenue if it decided to charge a price above $240?
Instruction: Enter your response rounded to one decimal place.
Own price elasticity:
Demand is: (Click to select) inelastic elastic
If the firm prices above $240, revenue will: (Click to select) decrease not change increase
c. What is the cross-price elasticity of demand between good X and good Z when Px = $140? Are goods X and Z substitutes or complements?
Instruction: Enter your response rounded to two decimal places.
Cross-price elasticity:
Goods X and Z are: (Click to select) substitutes complements
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 5 images
