Suppose the own price elasticity of demand for good x is -3


Suppose the own price elasticity of demand for good X is -3, its income elasticity is -3, its advertising elasticity is 4, and the cross-price elasticity of demand between it and good Y is 2. Determine how much the consumption of this good will change in percentage if:

a. The price of good X decreases by 7 percent.

b. The price of good Y increases by 9 percent.

c. Advertising decreases by 2 percent.

d. Income increases by 5 percent.

Request for Solution File

Ask an Expert for Answer!!
Business Economics: Suppose the own price elasticity of demand for good x is -3
Reference No:- TGS0988590

Expected delivery within 24 Hours