TW Cafe sells both coffee and Good Z.The price of coffee is $30 and Good Z is $40. 200 units of coffee are sold. Sheis facing the following demand for coffee that she sells:
Q = 120 – 18P + 2I - 6PZ
where Q = units of coffee
P = price of coffee
I = income level
PZ = price of Good Z
a.
What is the price elasticity of demand forcoffee?
b.
What is the cross-price elasticity of demand forcoffee? Interpret the value. 作者: williamEX 時間: 2015-10-31 02:42 AM