Suppose the own price elasticity of demand for good X is -2, its income elasticity is 3, its advertising elasticity is 4, and the cross-price elasticity of demand between it and good Y is -6. Determine how much the consumption of this good will change if: a) the price of good X increases by 5 percent. b) tthe price of good Y increases by 10 percent. c) advertising decreases by 2 percent.4 d) income falls by 3 percent
Suppose the own price elasticity of demand for good X is -2, its income elasticity is 3, its advertising elasticity is 4, and the cross-price elasticity of demand between it and good Y is -6. Determine how much the consumption of this good will change if: a) the price of good X increases by 5 percent. b) tthe price of good Y increases by 10 percent. c) advertising decreases by 2 percent.4 d) income falls by 3 percent
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter5: Price Elasticity Of Demand And Supply
Section: Chapter Questions
Problem 2SQP
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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 4, and the cross-price elasticity of
demand between it and good Y is -6. Determine how much the consumption of
this good will change if:
a) the price of good X increases by 5 percent.
b) tthe price of good Y increases by 10 percent.
c) advertising decreases by 2 percent.4
d) income falls by 3 percent
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