Essay
Suppose a consumer's demand function is 
.
a.What's the general equation for the own-price elasticity of demand for this consumer?
b.What's the price elasticity of demand when p=25?
c.Suppose instead that the demand function is 
.How does the equation for own-price elasticity change?
d.Continue with the demand equation in (c).Suppose p=25.What's the cross-price elasticity for x?
e.Continuing with part (d), what's the cross-price elasticity when the price of y is equal to 50?
Correct Answer:
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a. The general equation is 
.
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