Suppose a consumer's demand function is $x ( p ) = 100 - 3 p$ .
a.What's the general equation for the own-price elasticity of demand for this consumer?
b.What's the price elasticity of demand when p=25?
c.Suppose instead that the demand function is
$x \left( p _ { x } , p _ { y } \right) = 100 - 3 p _ { x } + p _ { y }$ .How does the equation for own-price elasticity change?
d.Continue with the demand equation in (c).Suppose p=25.What's the cross-price elasticity for x?
e.Continuing with part (d),what's the cross-price elasticity when the price of y is equal to 50?

Question

Suppose a consumer's demand function is $x ( p ) = 100 - 3 p$ . 
a.What's the general equation for the own-price elasticity of demand for this consumer?
b.What's the price elasticity of demand when p=25?
c.Suppose instead that the demand function is
 $x \left( p _ { x } , p _ { y } \right) = 100 - 3 p _ { x } + p _ { y }$ .How does the equation for own-price elasticity change? 
d.Continue with the demand equation in (c).Suppose p=25.What's the cross-price elasticity for x?
e.Continuing with part (d),what's the cross-price elasticity when the price of y is equal to 50?

Quizplus · Accepted Answer

The Answer of Suppose a consumer's demand function is $x ( p ) = 100 - 3 p$ . 
a.What's the general equation for the own-price elasticity of demand for this consumer?
b.What's the price elasticity of demand when p=25?
c.Suppose instead that the demand function is
 $x \left( p _ { x } , p _ { y } \right) = 100 - 3 p _ { x } + p _ { y }$ .How does the equation for own-price elasticity change? 
d.Continue with the demand equation in (c).Suppose p=25.What's the cross-price elasticity for x?
e.Continuing with part (d),what's the cross-price elasticity when the price of y is equal to 50?

Suppose a Consumer's Demand Function Is x(p)=100−3px ( p ) = 100 - 3 px(p)=100−3p

Suppose a Consumer's Demand Function Is $x ( p ) = 100 - 3 p$