Question: Suppose Q x d = 10,000 2 P x + 3 P y 4.5M, where P x = $100, P y = $50, and M

Suppose Q xd = 10,000 2 Px + 3 Py 4.5M,

where Px = $100, Py = $50, and M (income) = $2,000.

(a) What is the own price elasticity of demand? Please show your calculations.

(b) What is the cross price elasticity between good X and good Y? Please show your

calculations.

(c) What is the income elasticity of demand? Please show your calculations.

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