Question:
Price Elasticity and Cross-Price Elasticity for Demand for Florida Indian River, Florida Interior, and California Oranges
|
Type of Orange
|
Florida Indian River
|
Florida Interior
|
California
|
|
Florida Indian River
|
-3.07
|
+1.56
|
+0.01
|
|
Florida Interior
|
+1.16
|
-3.01
|
+.014
|
|
California
|
+0.18
|
+0.09
|
-2.76
|
Based on the above chart, determine by how much the demand for Florida Indian River oranges would change as a result of a 10 percent increase in the price of Florida interior oranges, and vice versa.