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Suppose the Demand Function Is Q xd = 100 −

Question 31

Multiple Choice

Suppose the demand function is Q xd = 100 − 8Px + 6Py - M.If Px = $4,Py = $2,and M = $10,what is the cross-price elasticity of good x with respect to the price of good y?


A) 0.17
B) 0.38
C) 0.21
D) 0.04

Correct Answer:

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