Answer:
A. 0.2
B. 0.5, 0.25
Explanation:
Q = 10-2p+2
We take like terms
Q= 10+2-2p
= 12-2p
A. If p = 1 dollar
12-2(1)
Q = 10
Price elasticity would be change in quantity divided by the change in price = -2
-2 x p/q
= -2x1/10
= 0.2
Price elasticity of demand is 0.2
B. P = 2 dollars
Q= 10-2x2+2
= 10-4+2
= 8
Price elasticity
= -2x2/8
= 0.5
Cross elasticity
= 1x2/8
= 0.25
