1. Suppose that a Demand Curve is given by
QY = 10 – 5PY + PX
Where QY is the quantity of the good, PY is the price of the good and PX pertains to the price of a substitutable good. The price of the substitutable good is K2. Suppose the price of the good is K1. Find the own price elasticity of demand? Find the cross-price elasticity of demand?
