The demand function for Good X is defined as Q_X = 20 - 0.5P_X + 1.2P_Y, where P_Y is the price of Good Y. Calculate the price elasticity of demand using the point formula for P_X = 12 and P_Y = 10. Determine whether demand is elastic, inelastic, or unit elastic with respect to its own price and whether Good Y is a substitute or a complement with respect to Good X.

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The Answer of The demand function for Good X is defined as Q_X = 20 - 0.5P_X + 1.2P_Y, where P_Y is the price of Good Y. Calculate the price elasticity of demand using the point formula for P_X = 12 and P_Y = 10. Determine whether demand is elastic, inelastic, or unit elastic with respect to its own price and whether Good Y is a substitute or a complement with respect to Good X.

The Demand Function for Good X Is Defined as QX

The Demand Function for Good X Is Defined as Q_X