Suppose the demand function for a consumer is given by 
a.What is the own-price elasticity of demand for x?
b What is the cross-price elasticity of demand for x?
c.What happens to spending on x as the price of x increases?
d.What is the income elasticity of demand for x? What does this tell you about what kind of good x must be?
Correct Answer:
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b. c. Since the price elasticity is...View Answer
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