Calculate the cross-price elasticity of demand calculate


Given the following linear market demand for good 1:

Q1=1000+0.5M-400P1+200P2

P1=10

P2=5

M=20000

a) calculate the cross-price elasticity of demand.

b) calculate the income elasticity of demand.

c) are the two goods compliments or substitues?

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Business Economics: Calculate the cross-price elasticity of demand calculate
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