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28 Sep 2019
Suppose the own price elasticity of demand for good X is -5, its income elasticity is -3, its advertising elasticity is 3, and the cross-price elasticity of demand between it and good Y is 5. 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 6 percent.
percent
b. The price of good Y increases by 7 percent.
percent
c. Advertising decreases by 4 percent.
percent
d. Income increases by 2 percent.
percent
Suppose the own price elasticity of demand for good X is -5, its income elasticity is -3, its advertising elasticity is 3, and the cross-price elasticity of demand between it and good Y is 5. 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 6 percent.
percent
b. The price of good Y increases by 7 percent.
percent
c. Advertising decreases by 4 percent.
percent
d. Income increases by 2 percent.
percent
Verified Answer
Vaishnavi KanukurtiLv10
28 Sep 2019
Jeffrey
JD Candidate at Stanford Law School7 Jul 2020
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