Question: The demand for company X product is given by Q(x) = 12 - 3P(x)+ 4P (y)
Suppose good X sells for $3.00 per unit and good Y sells for $1.50 per unit.
Problem 1: Calculate the cross-price elasticity of demand between goods X and Y at the given prices.
Problem 2: Are goods X and Y substitutes or complements?
Problem 3: What is the own price elasticity of demand at these prices?
Problem 4: How would your answers be to parts a and c change if the price of X dropped to $2.50 per unit?