Sam is rich and at this high income level, her demand for good X is independent of income and given by X*=46.4- 3 px/Py where px and py denote respectively the price of good X and the price of good Y. Assuming the price of good Y is equal to 4.1, find the value of the price of good X at which the own-price elasticity of Sam's demand is equal to -3.

Sam is rich and at this high income level, her demand for good X is independent of income and given by X*=46.4- 3 px/Py where px and py denote respectively the price of good X and the price of good Y. Assuming the price of good Y is equal to 4.1, find the value of the price of good X at which the own-price elasticity of Sam's demand is equal to -3.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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