Question: the demand function Q = 4 0 0 - 2 P - 3 PA + 0 . 0 2 Y where P = 2 0
the demand function Q P PA Y where P Pa and Y a Find the price elasticity of demand ptsb Is the demand elastic or inelastic? Why? ptsc Find the crossprice elasticity of demand ptsd Is it a substitute good or complement good? Why? ptse Find the income elasticity of demand pts Is the good inferior or superior? Why? pts If income rises by calculate the corresponding percentage change in demand. pts
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