Goods A and B are related goods. The price of good A is $10. When the price of good B is $4, demand for good A is P= 14 - 0.004QA- When the price of good B is $5, demand for good A is P= 16 - 0.0025Q,- Calculate the cross price elasticity of demand. *"If the answer is negative you must enter the - sign.** "Remember to maintain several significant digits during the calculation and leave two numbers after the decimal point when entering the final answer.*" Answer:

Goods A and B are related goods. The price of good A is $10. When the price of good B is $4, demand for good A is P= 14 - 0.004QA- When the price of good B is $5, demand for good A is P= 16 - 0.0025Q,- Calculate the cross price elasticity of demand. *"If the answer is negative you must enter the - sign.** "Remember to maintain several significant digits during the calculation and leave two numbers after the decimal point when entering the final answer.*" Answer:

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter20: Elasticity: Demand And Supply

Section: Chapter Questions

Problem 13E: Using the following equation for the demand for a good or service, calculate the price elasticity of...

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