Suppose an 18 percent drop in the price of strawberries leads to a 24 percent increase in the quantity demanded of strawberries and a 12 percent decrease in the quantity demanded of plums. a. What is the price elasticity of demand for strawberries? Instructions: Enter your response rounded to two decimal places b. At the current price level, the demand for strawberries is elastic because the price elasticity of demand for strawberries is C. What is the cross-price elasticity of demand between strawberries and plums? Instructions: Enter your response rounded to two decimal places. d. Strawberries and plums are substitutes because the cross-price elasticity of demand is positive

Suppose an 18 percent drop in the price of strawberries leads to a 24 percent increase in the quantity demanded of strawberries and a 12 percent decrease in the quantity demanded of plums. 

a. What is the price elasticity of demand for strawberries? Instructions: Enter your response rounded to two decimal places 

b. At the current price level, the demand for strawberries is elastic because the price elasticity of demand for strawberries is

c. What is the cross-price elasticity of demand between strawberries and plums? Instructions: Enter your response rounded to two decimal places. 

d. Strawberries and plums are substitutes because the cross-price elasticity of demand is positive

Answer rating: 100% (QA)

a The price elasticity of demand for strawberriespercent c... View the full answer