Econ Help

The demand curve for a product is given by Q_X^d = 1,200 - 3P_X - 0.1P_Z where P_z = $300.

a. What is the own price elasticity of demand when P_x = $140? Is demand elastic or inelastic at this price? What would happen to the firm’s revenue if it decided to charge a price below $140?

Instruction: Round your response to 2 decimal places.

Own price elasticity: [removed]

Demand is:

If the firm prices below $140, revenue will:

b. What is the own price elasticity of demand when P_x = $240? Is demand elastic or inelastic at this price? What would happen to the firm’s revenue if it decided to charge a price above $240?

Instruction: Round your response to 1 decimal place.

Own price elasticity: [removed]

Demand is:

If the firm prices above $240, revenue will:

c. What is the cross-price elasticity of demand between good X and good Z when P_x = $140? Are goods X and Z substitutes or complements?
Instruction: Round your response to 2 decimal places.

Cross-price elasticity: [removed]

Goods X and Z are: