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The Demand for Good X Has Been Estimated by Q

Question 63

Multiple Choice

The demand for good X has been estimated by Q xd = 12 − 3Px + 4Py.Suppose that good X sells at $2 per unit and good Y sells for $1 per unit.Calculate the own price elasticity.


A) −0.2
B) −0.3
C) −0.5
D) −0.6

Correct Answer:

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