When the price of good Y increases from $2 to $3, the quantity demanded for good X decreases from 20 units to 10 units. Calculate the cross-price elasticity of demand between goods X and Y. (Round all decimal calculations to the closest ten- thousandths so your percentages are rounded to the closest hundredths; round your final answer to the closest hundredths.) Are goods X and Y complements or substitutes?

Economics:
10th Edition
ISBN:9781285859460
Author:BOYES, William
Publisher:BOYES, William
Chapter20: Elasticity: Demand And Supply
Section: Chapter Questions
Problem 13E: Using the following equation for the demand for a good or service, calculate the price elasticity of...
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When the price of good Y increases from $2 to $3,
the quantity demanded for good X decreases from
20 units to 10 units. Calculate the cross-price
elasticity of demand between goods X and Y. (Round
all decimal calculations to the closest ten-
thousandths so your percentages are rounded to
the closest hundredths; round your final answer to
the closest hundredths.) Are goods X and Y
complements or substitutes?
Transcribed Image Text:When the price of good Y increases from $2 to $3, the quantity demanded for good X decreases from 20 units to 10 units. Calculate the cross-price elasticity of demand between goods X and Y. (Round all decimal calculations to the closest ten- thousandths so your percentages are rounded to the closest hundredths; round your final answer to the closest hundredths.) Are goods X and Y complements or substitutes?
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