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Suppose the demand function is Qxd = 100 - 5Px + 2Py - M. If Px = $4, Py = $2, and M = $50, what is the cross-price elasticity of good x with respect to the price of good y?
Choices are:
2, .12, .24, or -4.88
The process by which economics test hypotheses against facts to develop theories, principles also models
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