The demand for a product is Qd = 100-4P + 3Px and supply is Q = 10 + 2P, where Q is the quantity of the product in
thousands of units, P is the price of the product, and Px is the price of another good. When Px = $40, the equilibrium
price of the product is $ 35 and the equilibrium quantity is 80 thousand units. (Enter your responses as
whole numbers.)
At the equilibrium price and quantity, the price elasticity of demand for the product is -1.75. (Enter your answer as a
real number rounded to 2 decimal places. Don't forget a negative sign if appropriate.)
Demand is price elastic
At the equilibrium price and quantity, the price elasticity of supply for the product is .88. (Enter your answer as a real
number rounded to 2 decimal places. Don't forget a negative sign if appropriate.)
The cross price elasticity of demand for the product at the equilibrium point is . (Enter your answer as a real number
rounded to 2 decimal places. Don't forget a negative sign if appropriate.)