Following is themarket demand function for a private high school.Qprd = 80– 4 Ppr +0.9I+0.8Ppu.

 

　　Where Qprd is thenumber of applicants to the private high school per year in thousands , Ppr isthe average price of private high school (in thousands of RMB), I is thehousehold monthly income (in thousands of RMB), and Ppu is the average price ofpublic (government-supported ) . Assume that Ppr is equal to 35, I is equal to80, and Ppu is equal to 20 .Please calculate the cross-price elasticity ofdemand for the private high school with respect to the price of public highschool？

 

　　A.0.6

 

　　B.3.1

 

　　C.3.9

 

　　Solution:A