Question: I am having an issue understanding how to determine elasticity based upon a demand function. For instance, in the question: The demand for good X
I am having an issue understanding how to determine elasticity based upon a demand function. For instance, in the question:
The demand for good X has been estimated by Q xd = 6 - 2Px + 5Py. Suppose that good X sells at $3 per unit and good Y sells for $2 per unit.Calculate the own price elasticity.
Or for income elasticity
The demand for good X has been estimated to be lnQ xd= 100 - 2.5 lnPX + 4 lnPY + lnM.The income elasticity of good X is
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