1
answer
0
watching
146
views
5 Aug 2019
Suppose the own price elasticity of demand for good X is -2, its income elasticity is -1, its advertising elasticity is 2, 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 4 percent.
percent
b. The price of good Y increases by 8 percent.
percent
c. Advertising decreases by 3 percent.
percent
d. Income increases by 5 percent.
percent
Suppose the own price elasticity of demand for good X is -2, its income elasticity is -1, its advertising elasticity is 2, 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 4 percent.
percent
b. The price of good Y increases by 8 percent.
percent
c. Advertising decreases by 3 percent.
percent
d. Income increases by 5 percent.
percent
Patrina SchowalterLv2
6 Aug 2019