Multiple Choice
The demand for good X is estimated to be Qxd = 10,000 − 4PX + 5PY + 2M + AX, where PX is the price of X,PY is the price of good Y,M is income,and AX is the amount of advertising on X.Suppose the present price of good X is $50,PY = $100,M = $25,000,and AX = 1,000 units.What is the own price elasticity of demand for good X?
A) −0.003
B) −0.03
C) −0.3
D) −3
Correct Answer:
Verified
Correct Answer:
Verified
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