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    Managerial Economics and Business Strategy Study Set 1
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    Exam 3: Quantitative Demand Analysis
  5. Question
    Suppose the Demand Function Is Given by Q<sub>x</sub><sup>d</sup> = 8P<sub>x</sub><sup>0
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Suppose the Demand Function Is Given by Qxd = 8Px0

Question 167

Question 167

Multiple Choice

Suppose the demand function is given by Qxd = 8Px0.5 Py0.25 M0.12 H.Then the cross-price elasticity between goods x and y is:


A) 4.00.
B) 0.25.
C) 0.50.
D) 8.33.

Correct Answer:

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