Answer to Question #9137 in Economics of Enterprise for Arpita Ghosh
When the price of good X falls from the demand for good Y
increase from 20 Kg. to 25 Kg.
a) What is the cross elasticity of demand of good Y for good X?
b) Are goods X and Y compliments or substitutes?
Given the production function:
Q = 100 + P – 0.01P2 + 2N – 0.03N2
Determine the marginal rate of technical substitution