Determine how much the consumption of this good will change

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Reference no: EM131240531

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:

Instructions: Enter your answers as percentages. Include a minus (-) sign for all negative answers.

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.

Reference no: EM131240531

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