Is demand elastic or inelastic at the price

Reference no: EM13187595

The demand curve for a product is given by Qdx= 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 change 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?

Reference no: EM13187595

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