The store selling rice makes a further discovery, when the price of couscous changes from R30 per kg to R26 per kg, then the quantity of rice demanded decreases from 1360 kg per month to 1238 kg per month. Use this information to answer Q.3.2.1 and Q.3.2.2 below. Q.3.2.1 Use the point method to calculate the cross elasticity of demand for these products. Q.3.2.2 Comment on the significance of your solution in Q.3.2.1.

The store selling rice makes a further discovery, when the price of couscous changes from R30 per kg to R26 per kg, then the quantity of rice demanded decreases from 1360 kg per month to 1238 kg per month. Use this information to answer Q.3.2.1 and Q.3.2.2 below. Q.3.2.1 Use the point method to calculate the cross elasticity of demand for these products. Q.3.2.2 Comment on the significance of your solution in Q.3.2.1.

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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