Using regression analysis on data from a field experiment, the demand curve for a product is estimated to be Q_X^d= 1,200 3P_X 0.1P_ZwhereP_z= $300.

a. What is the own price elasticity of demand whenP_x= $140? Is demand elastic or inelastic at this price? What would happen to the firm's revenue if it decided to charge a price below $140?

Instruction:Enter your response rounded to two decimal places.

Own price elasticity:

Demand is:

(Click to select)

inelastic

elastic

.

If the firm prices below $140, revenue will:

(Click to select)

not change

increase

decrease

.

b. What is the own price elasticity of demand whenP_x= $240? Is demand elastic or inelastic at this price? What would happen to the firm's revenue if it decided to charge a price above $240?

Instruction:Enter your response rounded to one decimal place.

Own price elasticity:

Demand is:

(Click to select)

inelastic

elastic

.

If the firm prices above $240, revenue will:

(Click to select)

decrease

not change

increase

.

c. What is the cross-price elasticity of demand between goodXand goodZwhenP_x= $140? Are goodsXandZsubstitutes or complements?

Instruction:Enter your response rounded to two decimal places.

Cross-price elasticity:

GoodsXandZare:

(Click to select)

substitutes

complements

.