11. 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?

11. 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?

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter5: Elasticity

Section: Chapter Questions

Problem 1SCQ: From the data in Table 5.5 about demand for smart phones, calculate the price elasticity of demand...

See similar textbooks