Suppose the demand function is given by QX d = 8PX 0.5 PY 0.25 M0.12 H. Then the cross-price elasticity between goods X and Y is:
Note
Suppose the demand function is given by QX d = 8PX 0.5 PY 0.25 M0.12 H. Then the cross-price elasticity between goods X and Y is 0.25.