A rise in the price of a crate of Pepsi from GHS 20 to GHS 30 results in a fall in the quantity of crate of Pepsi demanded from 220 million to 180 million a day and at today’s price of a Coca-Cola, GHS 15, the quantity of Coca-Cola demanded increases from 80 million to 100 million a day.a Calculate and explain the cross elasticity of demand for Coca-cola with respect to the price of a Pepsi.

A rise in the price of a crate of Pepsi from GHS 20 to GHS 30 results in a fall in the quantity of crate of Pepsi demanded from 220 million to 180 million a day and at today’s price of a Coca-Cola, GHS 15, the quantity of Coca-Cola demanded increases from 80 million to 100 million a day.a Calculate and explain the cross elasticity of demand for Coca-cola with respect to the price of a Pepsi.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter5: Elastic And Its Application

Section: Chapter Questions

Problem 2CQQ: The price of a good rises from 8 to 12, and the quantity demanded falls from 110 to 90 units....

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