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The demand function for good X is as follows: X= 25 + 5Py+ 5B-2PX A. What...

 The demand function for good X is as follows:

 X= 25 + 5Py + 5B -2Px


 A. What is the slope of this demand curve? 


 B. If Px=10, Py=3, and B= 10 derive the:

 a. Own demand elasticity at these values

 b. Cross elasticity at these values

 c. Income elasticity at these values.  


 C. Is good X elastic or inelastic at these values for income, price of good Y and price of good X? Is good Y a substitute or complementary good? And, is good X an inferior of normal good? (Please explain). 


 D. What is the price of good X that maximizes total revenue?  


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