When the price of butter increases from $1 to $2, the quantity demand of margarine increases from 6 to 8. What is the cross-price elasticity of demand? A) (6-8)/8 (1-2)/2 B) (8-6)/6 (2-1) C)(1-2)/2 (8-6)/6 D) (2-1) (6-8)

When the price of butter increases from $1 to $2, the quantity demand of margarine increases from 6 to 8. What is the cross-price elasticity of demand? A) (6-8)/8 (1-2)/2 B) (8-6)/6 (2-1) C)(1-2)/2 (8-6)/6 D) (2-1) (6-8)

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter5: Elastic And Its Application

Section: Chapter Questions

Problem 2CQQ: The price of a good rises from 8 to 12, and the quantity demanded falls from 110 to 90 units....

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Question

1. When the price of butter increases from $1 to $2, the quantity demand of margarine
increases from 6 to 8. What is the cross-price elasticity of demand?
A) (6-8)/8
(1-2)/2
(8-6)/6
(2-1)/₁
(1-2)/2
(8-6)/
B)
D) (2-1)/₁
(6-8)/8

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