The demand curve for a product x is given by Qdx 1,000 2Px + 0.02PZ, %3D where Pz = $400. a) What is the own price elasticity of demand when Px = $154? Is demand elastic or inelastic at this price? What would happen to the firm's revenue if it decided to charge a price below $150? b) What is the own price elasticity of demand when Px = $354? Is demand elastic or inelastic at this price? What would happen to the firm's revenue if it decided to charge a price above $350? c) What is the cross-price elasticity of demand between good X and good Z when Px

The demand curve for a product x is given by Qdx 1,000 2Px + 0.02PZ, %3D where Pz = $400. a) What is the own price elasticity of demand when Px = $154? Is demand elastic or inelastic at this price? What would happen to the firm's revenue if it decided to charge a price below $150? b) What is the own price elasticity of demand when Px = $354? Is demand elastic or inelastic at this price? What would happen to the firm's revenue if it decided to charge a price above $350? c) What is the cross-price elasticity of demand between good X and good Z when Px

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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