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The demand curve for a product is given by Qdx= 1,200- 3Px- 0.1Pz where Pz =$300.
A. What is the own price elasticity of femand when Px =$140? Is demand elastic or inelastic at this price? what would happen to the firms revenue if it decided to charge a price below $140?
b. What is the own price elasticity of femand when Px =$240? Is demand elastic or inelastic at this price? what would happen to the firms revenue if it decided to charge a price above $240?
c. What is the cross-price elasticity of demand between good X and good Z when Px=$140? Are goods X and Z substitutes or compliments?
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The initial impetus for the Food Drug and Cosmetic Act and the Pure Vaccine Act included:
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