Calculate the cross price elasticity of demand for wheat


Calculate the cross price elasticity of demand for wheat. The wheat demand function is q = 1200 - 9.5 p +16.2 pr + 0.2 y where q is the quantity of wheat demanded in thousands of metric tons per year, p is theprice of wheat in $ per kg, pr is the price of rice in $ per kg, and y is the income of the consumers. Assume that p is initially $45 per kg is $31 per kg, and q is 1275 thousand metric tons per year.

(1) -0.34(2) 0.39(3) 9.5(4) 16.2(5) None of the above

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Microeconomics: Calculate the cross price elasticity of demand for wheat
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