Suppose the demand function is QX d = 100 – 8PX + 6PY – M. If PX = $4, PY = $2, and M = $10, what is the cross-price elasticity of good x with respect to the price of good y?
Note
Suppose the demand function is QX d = 100 - 8PX + 6PY - M. If PX = $4, PY = $2, and M = $10, the cross-price elasticity of good x with respect to the price of good y is 0.17.