Suppose the own price elasticity of demand for good X is -5, its income elasticity is 2, its advertising elasticity is 4, and the cross-price elasticity of demand between it and good Y is 3. 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 5 percent. percent b. The price of good Y increases by 9 percent. percent c. Advertising decreases by 3 percent. percent d. Income increases by 2 percent. percent
Suppose the own price elasticity of demand for good X is -5, its income elasticity is 2, its advertising elasticity is 4, and the cross-price elasticity of demand between it and good Y is 3. 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 5 percent. percent b. The price of good Y increases by 9 percent. percent c. Advertising decreases by 3 percent. percent d. Income increases by 2 percent. percent
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
Instructions: Enter your responses as percentages. Include a minus (-) sign for all negative answers.
a. The price of good X decreases by 5 percent.
percent
b. The price of good Y increases by 9 percent.
percent
c. Advertising decreases by 3 percent.
percent
d. Income increases by 2 percent.
percent
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