Suppose the demand curve for a product is given by Q= 17- 2P + 1Ps where P is the price of the product and Ps is the price of a substitute good. The price of the substitute good is $2.40. Suppose P = $0.50. The price elasticity of demand is -.05. (Enter your response rounded to two decimal places.) The cross-price elasticity of demand is .13. (Enter your response rounded to two decimal places.) Suppose the price of the good, P, goes to $1.00. Now the price elasticity of demand is (Enter your response rounded to two decimal places.)
Suppose the demand curve for a product is given by Q= 17- 2P + 1Ps where P is the price of the product and Ps is the price of a substitute good. The price of the substitute good is $2.40. Suppose P = $0.50. The price elasticity of demand is -.05. (Enter your response rounded to two decimal places.) The cross-price elasticity of demand is .13. (Enter your response rounded to two decimal places.) Suppose the price of the good, P, goes to $1.00. Now the price elasticity of demand is (Enter your response rounded to two decimal places.)
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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Transcribed Image Text:Suppose the demand curve for a product is given by
Q= 17- 2P + 1Ps
where P is the price of the product and Ps is the price of a substitute good. The price of the substitute good is $2.40.
Suppose P = $0.50. The price elasticity of demand is -.05. (Enter your response rounded to two decimal places.)
The cross-price elasticity of demand is .13. (Enter your response rounded to two decimal places.)
Suppose the price of the good, P, goes to $1.00. Now the price elasticity of demand is
(Enter your response rounded to two decimal places.)
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