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. a)  Suppose P = €1. What is the price elasticity of demand? What is the cross-price elasticity of demand? b)  Explain the economic meaning of the calculated value of cross-price elasticity. c)  Explain in one sentence how the price increase of the product impacts the firm’s revenue in this case

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