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Calculating own price and cross price elasticity values

The demand function for kingston's product is given by
logQ = 2.01 -0.148LogP + 0.25Log Z

Q = the quantity demanded (in tons) of its product, P = the price ( in dollars per ton), and Z = the price(in dollars of a rival product

a. Calculate the price elastic of demand
b. Calculate the cross elasticity of demand between kingston's product and the rival product.

Solution Preview

a. Calculate the price elastic of demand
logQ = 2.01 -0.148LogP + 0.25Log Z
Differentiating both sides with respect to P, we ...

Solution Summary

Solution describes the steps to calculate own price elasticity and cross price elasticity in the given case.

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