Question: Suppose the own price elasticity of demand for good X

Suppose the own price elasticity of demand for good X is 3, its income elasticity is 1, its advertising elasticity is 2, and the cross- price elasticity of demand between it and good Y is 4. Determine how much the consumption of this good will change if:
a. The price of good X decreases by 5 percent.
b. The price of good Y increases by 8 percent.
c. Advertising decreases by 4 percent.
d. Income increases by 4 percent.


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  • CreatedApril 18, 2014
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