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Calculate the coefficient for the cross elasticity

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1. For the following three cases, use a midpoints formula to calculate the coefficient for the cross elasticity of demand and identify the type of relationship between the two products. SHOW calculations.

(a) The quantity demanded for product A increases from 30 to 40 as the price of product B increases from $0.10 to $0.20.

Coefficient: ______ Relationship: ________________

(b) The quantity demanded for product A decreases from 3000 to 1500 as the price of good B increases from $5 to $10.

Coefficient: ______ Relationship: ________________

Reference no: EM131277995

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