Question: If a 20 percent decrease in the price of sapphires causes a 15 percent decrease in the quantity of diamonds demanded, then the cross-price elasticity

If a 20 percent decrease in the price of sapphires causes a 15 percent decrease in the quantity of diamonds demanded, then the cross-price elasticity of demand between sapphires and diamonds is:

Select one:

a.0.75

b.1.13

c.0.60

d.4.00

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

If a 20 percent decrease in the price of sapphires causes a 15 percent decrease in the quantity of diamonds demanded, then the cross-price elasticity of demand between sapphires and diamonds is:?

Answer atleast 14 questions correctly in the following questions from microeconomics- 1. Question 1 Demand is inelastic when the absolute value of the price elasticity of demand is: 1 point 0. less...

If a 15 percent decrease in the price of sapphires causes a 20 percent decrease in the quantity of diamonds demanded, then the cross-price elasticity of demand between sapphires and diamonds is:...

please help me with the following questions 1. If a rightward shift of the supply curve leads to a 6 percent decrease in the price and a 5 percent increase in the quantity demanded, the price...

2. Willie's widgets currently sell for $19 each. At thatprice, Willie has sold 41,000 widgets. Willie would like to maximize hisrevenue, so he raises the price of a widget to $23 each. Willie has...

1. A food company lowers the price of its food by 5 percent and discovers that the quantity of its product demanded increases by 8 percent. Evidently the demand for the firm's product is A. unit...

1. As the number of substitutes for a particular product decreases, the price elasticity of demand for the product (increase or decrease) ?...

Practice Quiz 3 1) Economists find the notion of people "needing" things to be A) supported by the law of demand. B) considered false. C) seriously misleading because they ignore substitutes. D)...

A3 percent decrease in the price of milk causes a 12 percent increase in the quantity demanded of chocolate syrup. What is the cross-price elasticity of demand for chocolate syrup with respect to the...

Help Save Su Check my w 3 A 4 percent decrease in the price of milk causes a 16 percent decrease in the quantity demanded of chocolate syrup. What is the cross-price elasticity of demand for...

What you need to do (Without using a dictionary!) : 1) compile a collection of movies, characters (note the series they're from), song title, or anything you think can relate in the same way. 8...

Why is a good writing style particularly important in a job application letter?

The Internet is based on which three key technologies? Question 6 Select one: A . TCP / IP , HTML , and HTTP B . Email, instant messaging, and newsgroups C . TCP / IP , HTTP , and packet switching D...

The CEO wants to offer use of the corporate aircraft ( if one is purchased ) to his close friend that is currently running for a position in the United States Senate. Can the CEO do that? If so ,...

consider how to bridge the gap between research and evidence-based HR practice;

describe and present a summary of data you have collected.

collect, organise and store quantitative data in an effective way;