Presume the own price elasticity of demand for good x is -5


Presume the own price elasticity of demand for good X is -5, its income elasticity is 1, its advertising elasticity is 3, and the cross-price elasticity of demand among it and good Y is 4. Decide how much the consumption of this good will change if:

1. Income increases by 4 percent.

2. Advertising decreases by 2 percent.

3. The price of good X decreases by 5 percent.

4. The price of good Y increases by 8 percent.

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Microeconomics: Presume the own price elasticity of demand for good x is -5
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