What is price elasticity of demand given market conditions


Problem

Suppose that the quantity of steel demanded in France is given by Qs = 100 - 2Ps + 0.5Y + 0.2PA, where Qs is the quantity of steel demanded per year, Ps is the market price of steel, Y is real GDP in France, and PA is the market price of aluminum. In 2011, Ps =10, Y = 40, and P= 100. How much steel will be demanded in 2011? What is the price elasticity of demand, given market conditions in 2011?

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Microeconomics: What is price elasticity of demand given market conditions
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