The demand curve for a product is given by qdx 1200- 3px-, Ask an Expert

Economics

The demand curve for a product is given by Qdx= 1,200- 3Px- 0.1Pz where Pz =$300.

A. What is the own price elasticity of femand when Px =$140? Is demand elastic or inelastic at this price? what would happen to the firms revenue if it decided to charge a price below $140?

b. What is the own price elasticity of femand when Px =$240? Is demand elastic or inelastic at this price? what would happen to the firms revenue if it decided to charge a price above $240?

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 compliments?

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91720637

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