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rubywhale243Lv1
28 Sep 2019
Suppose the own-price elasticity of demand for good X is -5, its income elasticity is 2, its advertising elasticity is 4, and the cross-price elasticity of demand between it and good Y is 3. Determine how much the consumption of this good will change if:
Instructions: Enter your answers as percentages. Include a minus (-) sign for all negative answers.
a. The price of good X decreases by 5 percent.
b. The price of good Y increases by 9 percent.
c. Advertising decreases by 3 percent.
d. Income increases by 2 percent.
Suppose the own-price elasticity of demand for good X is -5, its income elasticity is 2, its advertising elasticity is 4, and the cross-price elasticity of demand between it and good Y is 3. Determine how much the consumption of this good will change if:
Instructions: Enter your answers as percentages. Include a minus (-) sign for all negative answers.
a. The price of good X decreases by 5 percent.
b. The price of good Y increases by 9 percent.
c. Advertising decreases by 3 percent.
d. Income increases by 2 percent.
Darryn D'SouzaLv10
28 Sep 2019
