Question: Suppose demand is given by Q x d = 50 4P x + 6P y + A x , where P x = $4, P

Suppose demand is given by Q _x^d = 50 4P_x + 6P_y + A_x,

where P_x = $4, P_y = $2, and A_x = $50.

(a) What is the quantity demanded of good x? Please show your calculations.

(b) What is the own price elasticity of demand (point elasticity) when P_X = $4? Is demand elastic or inelastic at this price? Please explain.

c) What is the cross price elasticity of demand between good X and good Y when P_X = $4 (point elasticity) ? Are goods X and Y substitutes or complements? Please explain.

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