Firm A Produces good x and firm B produces good y with the following demand functions: Qy=75-5Py-Px Qx=150-10Px-4Py Px=8

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answerhappygod
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Firm A Produces good x and firm B produces good y with the following demand functions: Qy=75-5Py-Px Qx=150-10Px-4Py Px=8

Post by answerhappygod »

Firm A Produces good x and firm B produces good y with the
following demand functions:
Qy=75-5Py-Px
Qx=150-10Px-4Py
Px=8 Py=4
Find the Cross Price Elasticity (the cross price elasticity.
Price change of y)
Firm A and B will merge together. The firms have announced that
the price of good Y will decrease by 1%. Will the Department of
Justice allow this merge? Show mathematically and briefly
explain.
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