Suppose the own price elasticity of demand for good X is -2, its income elasticity is 3, its advertising elasticity is 2, and the cross-price elasticity of demand between it and good Y is -4. Determine how much the consumption of this good will change if:Instructions: Enter your responses as percentages. Include a minus (-) sign for all negative answers.a. The price of good X decreases by 6 percent. percentb. The price of good Y increases by 8 percent. percentc. Advertising decreases by 4 percent. percentd. Income increases by 5 percent. percent

ECON MICRO
5th Edition
ISBN:9781337000536
Author:William A. McEachern
Publisher:William A. McEachern
Chapter5: Elasticity Of Demand And Supply
Section: Chapter Questions
Problem 4.9P: (Other Elasticity Measures) Complete each of the following sentences: a. The income elasticity of...
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Suppose the own price elasticity of demand for good X is -2, its income elasticity is 3, its advertising elasticity is 2, and the cross-price elasticity of demand between it and good Y is -4. Determine how much the consumption of this good will change if:

Instructions: Enter your responses 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 8 percent.

 percent

c. Advertising decreases by 4 percent.

 percent

d. Income increases by 5 percent.
 percent

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