Suppose a consumer's demand function is 
.
a. What's the general equation for the own-price elasticity of demand for this consumer?
b. What's the price elasticity of demand when p=25?
c. Suppose instead that the demand function is 
. How does the equation for own-price elasticity change?
d. Continue with the demand equation in (c). Suppose p=25. What's the cross-price elasticity for x?e. Continuing with part (d), what's the cross-price elasticity when the price of y is equal to 50?
What will be an ideal response?
.b. Plugging p=50 into the above equation, we get an elasticity of
.c.
d. Plugging 25 in for the price of x, we get a cross-price elasticity of
e.
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A) advantage-taking. B) comparative value. C) specialization. D) outsourcing.
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A. president always gets to vote at the FOMC meetings. B. conducts open market transactions. C. is one of 12 regional Federal Reserve Banks. D. All of the above are correct.
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A. Figure 1 B. Figure 2 C. Figure 3 D. Figure 4
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A. Move us to a point above the production possibilities curve. B. Move us from a point below the production possibilities curve to a point on the production possibilities curve. C. Have no effect on our position on the production possibilities curve. D. Move us along the edge of the production possibilities curve.