Suppose the own price elasticity of demand for good x is -4


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.

Request for Solution File

Ask an Expert for Answer!!
Business Economics: Suppose the own price elasticity of demand for good x is -4
Reference No:- TGS01644449

Expected delivery within 24 Hours