### What is the cross-price elasticity of demand

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Copy anThe demand curve for a product is given by Q x = 1,000 - 2Px + .02Pz, where Pz = \$400.

a. What is the own price elasticity of demand when Px = \$154? Is demand elastic or inelastic at this price? What would happen to the firm's revenue if it decided to charge a price below \$154?

b. What is the own price elasticity of demand when Px = \$354? Is demand elastic or inelastic at this price? What would happen to the firm's revenue if it decided to charge a price above \$354?

c. What is the cross-price elasticity of demand between good X and good Z when Px = \$154? Are goods X and Z substitutes or complements?d paste your question here...

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