#13. If the cross-price elasticity between Good A and Good B is −1.5 and the percentage change in quantity demanded of Good B is 15 percent, what is the percentage change in the price of Good A? a. −10 percent b. − 0.10 percent c. −11.50 percent d. −1 percent e. 11.50 percent

#13. If the cross-price elasticity between Good A and Good B is −1.5 and the percentage change in quantity demanded of Good B is 15 percent, what is the percentage change in the price of Good A? a. −10 percent b. − 0.10 percent c. −11.50 percent d. −1 percent e. 11.50 percent

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter6: Elasticities

Section: Chapter Questions

Problem 8P: If the elasticity of demand for hamburgers equals 21.5 and the quantity demanded equals 40,000,...

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Concept explainers

Elasticity of Demand and Supply

The elasticity of demand and supply are two important concepts of microeconomics. The elasticity of demand measures the responsiveness of consumers’ demands to the price change, changes in income of consumers, and changes in the price of the related goods. Similarly, the elasticity of supply refers to the proportionate change in the quantity supplied due to the proportionate change in the price. In other words, it can be said that elasticity of supply measures how the quantity of supply changes when the price changes of that particular product.

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