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Question 2 0.25 pts 2. If X and Y are substitutes, then what can we infer- about the unknown coefficient ß in the above deman
Refer to the following demand function, answer Questions 1-3: Qox = 200 - 3PX - 31+BPY Where Qox is quantity demanded of good
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Answer #1

Ans: Beta > 0

Explanation:

In the demand function, the price coefficient of good Y (beta) is positive. It means the value of beta is greater than 0. Since good X and Y are substitutes, the cross elasticity will be positive.

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