If a 12 percent increase in the price of Cheerios causes a 22 percent reduction in the number of boxes of cereal​ demanded the price elasticity of demand for Cheerios is −___. ​(Enter your response rounded to two decimal​ places.) The demand for Cheerios is  1.- unit-elastic 2.- elastic 3.- inelastic

If the current price elasticity of demand for apples is -50, what will be the change in sales (i.e., total revenue) after a 20% price increase? Please show your calculation.

am. 111.

The accompanying table lists the cross-price elasticities of demand for several goods, where the percent quantity change is measured for the first good of the pair, and the percent price change is measured for the second good.  ( please see image) a. Explain the sign of each of the cross-price elasticities. What does it imply about the relationship between the two goods in question? b. Compare the absolute values of the cross-price elasticities and explain their magnitudes. For example, why is the cross-price elasticity of McDonald’s burgers and Burger King burgers less than the cross-price elasticity of butter and margarine? c. Use the information in the table to calculate how a 10% increase in the price of Pepsi affects the quantity of Coke demanded. d. Use the information in the table to calculate how a 5% decrease in the price of gasoline affects the quantity of SUVs demanded.