Question: Question-1 Suppose the demand function for good 1: is given as the following: where denotes the income and denotes the price of good which is

Question-1 Suppose the demand function for good 1: is given as the following: where denotes the income and denotes the price of good which is a related product to good Given the above demand function, suppose that income and . Using midpoint formula, what is the price elasticity of demand for good x when price of x changes from 40 to 20 (10 Points)

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