(Answered) Suppose the demand curve for a product is given byq 10 -

Economics

Suppose the demand curve for a product is given by

Q = 10 - 2P + Ps

where P is the price of the product and Ps is the price of a substitute good. The price of the substitute good is $2.00. a. Suppose P = $1.00. What is the price elasticity of demand? What is the cross-price elasticity of demand?

b. Suppose the price of the good, P, goes to $2.00. Now what is the price elasticity of demand, and what is the cross-price elasticity of demand?

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Microeconomics, Economics

Category:- Microeconomics
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