The demand curve for a product is given by Q,= 1200-3?, -0.1 Where P, =$300
a)- is the own price elasticity of demand when P, =$140 ? Is demand elastic or inelastic at
this price? would happen to the firm’s revenue if it decided to charge a price below
$140?
b)- is the own price elasticity of demand when P, = $240? Is demand elastic or inelastic at this price? would happen to the firm’s revenue if it decided to charge a price above
$240?
c)- is the cross-price elasticity of demand between good X and good Z when P.. = $140 Are goods X and Z substitutes or complements?
