Calculate the cross-price elasticity of demand

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Reference no: EM131393815

Given the following linear market demand for good 1:

Q₁=1000+0.5M-400P₁+200P₂

P₁=10

P₂=5

M=20000

a) calculate the cross-price elasticity of demand.

b) calculate the income elasticity of demand.

c) are the two goods compliments or substitues?

Reference no: EM131393815

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