The demand function for two commodities A and B in a market are given as follows. QA=96-2PA-3PB, QB=30-25PA+0.32Y. Where PA and PB are prices of commodity A and B respectively, and Y is consumers average money income, given PA=#2, PB=#4, and Y=#1000. Required, (a) calculate the price elasticity of demand for commodity A. (b) what is the income elasticity of demand for commodity B. (c) determine the cross-price elasticity of demand for commodity A with respect to the price of commodity B.
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Hudu
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