The demand curve for a product is given by QXd = 1,200 - 3PX - 0.1PZ where Pz = $300.a. What is the own price elasticity of demand when Px = $140? Is demand elastic or inelastic at this price? What would happen to the firm’s revenue if it decided to charge a price below $140?Instruction: Enter your response rounded to two decimal places.Own price elasticity: Demand is: inelastic or elastic ?If the firm prices below $140, revenue will: decrease or not change or increase ?b. What is the own price elasticity of demand when Px = $240? Is demand elastic or inelastic at this price? What would happen to the firm’s revenue if it decided to charge a price above $240?Instruction: Enter your response rounded to one decimal place.Own price elasticity: Demand is: elastic or inelastic ?If the firm prices above $240, revenue will: not change or decrease or increase ?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 complements? Instruction: Enter your response rounded to two decimal places.Cross-price elasticity: Goods X and Z are: complements or substitutes ?
The
a. What is the own
Instruction: Enter your response rounded to two decimal places.
Own price elasticity:
Demand is: inelastic or elastic ?
If the firm prices below $140, revenue will: decrease or not change or increase ?
b. What is the own price elasticity of demand when Px = $240? Is demand elastic or inelastic at this price? What would happen to the firm’s revenue if it decided to charge a price above $240?
Instruction: Enter your response rounded to one decimal place.
Own price elasticity:
Demand is: elastic or inelastic ?
If the firm prices above $240, revenue will: not change or decrease or increase ?
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 complements?
Instruction: Enter your response rounded to two decimal places.
Cross-price elasticity:
Goods X and Z are: complements or substitutes ?
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