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Consider the demand function for a good given as Qd = 150 + 4I - 0.2P2 - 5P1 where income I is in $1,000 and P1 is the price of a related good.
(a) What is the relationship between these two goods?
(b) calculate the income, cross price, and own price elasticity of demand if I = $ 45,000, P1 = $30, and P = $25.
(c) At what price demand is own price unit elastic if income is $40,000 and P1 is $35?
Economic fluctuations (or business cycles) are fluctuations in the level of economic activity, relative to a long-term growth trend. Comparing and contrasting the economic fluctuation the United States has experiences from 1990 to current date.
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