Scenario 5-3

Suppose the demand function for good X is given by:
$$Q _ { d x } = 15 - 0.5 P _ { x } - 0.8 P _ { y }$$ where
$$Q _ { d x }$$ is the quantity demanded of good X,
$$P _ { x }$$ is the price of good X, and
$$P _ { y }$$ is the price of good Y, which is related to good X.
-Refer to Scenario 5-2. Using the midpoint method, if the price of good Y is $10 and the price of good X decreases from $5 to $3, what is the price elasticity of demand for good X? Is the demand elastic, unitary elastic, or inelastic?

Question

Scenario 5-3
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Suppose the demand function for good X is given by:
 $$Q _ { d x } = 15 - 0.5 P _ { x } - 0.8 P _ { y }$$ where
 $$Q _ { d x }$$ is the quantity demanded of good X,
 $$P _ { x }$$ is the price of good X, and
 $$P _ { y }$$ is the price of good Y, which is related to good X.
-Refer to Scenario 5-2. Using the midpoint method, if the price of good Y is $10 and the price of good X decreases from $5 to $3, what is the price elasticity of demand for good X? Is the demand elastic, unitary elastic, or inelastic?

Quizplus · Accepted Answer

The Answer of Scenario 5-3
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Suppose the demand function for good X is given by:
 $$Q _ { d x } = 15 - 0.5 P _ { x } - 0.8 P _ { y }$$ where
 $$Q _ { d x }$$ is the quantity demanded of good X,
 $$P _ { x }$$ is the price of good X, and
 $$P _ { y }$$ is the price of good Y, which is related to good X.
-Refer to Scenario 5-2. Using the midpoint method, if the price of good Y is $10 and the price of good X decreases from $5 to $3, what is the price elasticity of demand for good X? Is the demand elastic, unitary elastic, or inelastic?

Scenario 5-3 ​ Suppose the Demand Function for Good X Qdx=15−0.5Px−0.8PyQ _ { d x } = 15 - 0.5 P _ { x } - 0.8 P _ { y }Qdx​=15−0.5Px​−0.8Py​

Scenario 5-3

Suppose the Demand Function for Good X $Q _ { d x } = 15 - 0.5 P _ { x } - 0.8 P _ { y }$