consumer with a demand function… Is a function of… Qd D P, I , Ps , Pc Quantity demanded Price Income Prices of Substitutes Price 40 D 20,100,40,10 $20 D I 100, Ps 40, Pc 10 40 Quantity Prices of Compliments Given a demand function we can characterize the behavior of demand with elasticity.. p Price %Qd % P Price elasticity will always be a negative number p $20 50 2 25 $15 %P 25% D I , Ps , Pc 40 60 %Qd 50% Quantity Given a demand function…
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