The demand for good X has been estimated to be lnQXd = 100 – 2.5 lnPX + 4 lnPY + lnM.The cross price elasticity of demand between goods X and Y is
Note
The demand for good X has been estimated to be lnQXd = 100 - 2.5 lnPX + 4 lnPY + lnM.The cross price elasticity of demand between goods X and Y is 4.0.