The demand curve for a product is given by 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?

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?

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?