Question: In 2001 X cost 3 and sold 400 units That

In 2001, X cost $3 and sold 400 units. That same year, a related good Y cost $10 and sold 200 units. In 2002, X still cost $3 but sold only 300 units, while Y rose in price to $12 and sold only 150 units. Other things the same, and assuming that the demand for X is a linear function of the price of Y, what was the cross- price elasticity of demand for X with respect to Y in 2001?

View Solution:

Sale on SolutionInn
  • CreatedDecember 12, 2014
  • Files Included
Post your question