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    Cross price elasticity of good Y

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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?

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    Solution Summary

    This solution calculates the cross-price elasticity of a good with respect tot he given price of another.