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Karl has the following demand curve for hamburgers

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June 7th, 2024

Karl has the following demand curve for hamburgers: q?h= 200?3Ph+ 0.25Ps where qh is the number of hamburgers he buys, Ph is the price of hamburgers, and Ps is the price of steaks. Suppose Ph= 5 and Ps= 20.a. What is Karl’s demand for hamburgers at those prices?b. Calculate the (own-price) elasticity of demand for hamburgers at those prices. Is Karl’sdemand elastic or inelastic?c. Calculate the cross-price elasticity of demand for hamburgers and steaks at those prices.Are steaks and hamburgers complements or substitutes?

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