How to give the hypothetical elastisicites

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You have been hired to predict the effects of increasing the price of itunes songs by 10% from .99 cents to $1.09. You are interested in the effects of the price hike on the number of songs downloaded legally from itunes the number of songs downloaded legally from other online music stores the number of ipod players dol and the number of CDs sold in stores. Give the hypothetical elastisicites in the follwing table fill in the blanks. Recall the conventional practive for the price elasticty of demand of a product uses the absolute value of the elasticity. Product Price Elasticity or Cross-Price Elasticity Predicited % Change in quanity demanded itunes songs 1.50(absolute value) songs from other stores +2.00 ipod players -.70 CDs in stores +1.80

Reference no: EM13214027

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