+1-415-670-9189
info@expertsmind.com
Cross-price elasticity of demand between goods
Course:- Business Economics
Reference No.:- EM13816943




Assignment Help
Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
Assignment Help >> Business Economics

1. Suppose the own price elasticity of demand for good X is -4, its income elasticity is 3, its advertising elasticity is 4, 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 4 percent.

b. The price of good Y increases by 9 percent.

c. Advertising decreases by 2 percent.

d. Income increases by 3 percent.

2. Suppose the cross-price elasticity of demand between goods X and Y is -5. How much would the price of good Y have to change in order to change the consumption of good X by 40 percent?




Put your comment
 
Minimize


Ask Question & Get Answers from Experts
Browse some more (Business Economics) Materials
What are the different types of unemployment and how are they related to the condition of the economy during a given period? Is it possible for the number of employed workers
Who benefits from a tariff or quota? Who loses? Why would domestic markets benefit from protectionist trade policies? How do protectionist trade policies affect a government’s
Have no effect on equilibrium price and quantity. Reduce quantity demanded, but not shift demand curve. Which of following is unique to capitalist ideology.
Suppose the economy is thought to be 1 percent below potential (i.e., the output gap is −1 percent), when potential output grows 4 percent per year. Suppose the Fed is followi
Assume an economy with no government or foreign trade and the following equations: What is equilibruim output?What are the equilibrium savings (savings at equilibrium output)?
For the country you examined in discussion 1, use the summary of types of economic systems to classify the economic system of the country. Is this an evolving economic syste
Suppose that after a lifetime of consuming fattening fast food every day you develop heart disease. The government must pay most of your medical bills through the Medicare sys
AES was formed in 1996 and hired employees that year. At a meeting in 1997, they expressed concern to an executive that the company was not likely to survive as they used outd