. Suppose the own price elasticity of demand for good X is −5, its income elasticity is 2, its advertising elasticity is 3, and the cross-price elasticity of demand between it and good Y is 6. Determine how much the consumption of this good will change if: Instructions: Enter your responses as percentages. If you are entering a negative number, be sure to use a (−) sign. a. The price of good X decreases by 4 percent. percent b. The price of good Y increases by 7 percent. percent c. Advertising decreases by 3 percent. percent d. Income increases by 2 percent. percent
. Suppose the own price elasticity of demand for good X is −5, its income elasticity is 2, its advertising elasticity is 3, and the cross-price elasticity of demand between it and good Y is 6. Determine how much the consumption of this good will change if: Instructions: Enter your responses as percentages. If you are entering a negative number, be sure to use a (−) sign. a. The price of good X decreases by 4 percent. percent b. The price of good Y increases by 7 percent. percent c. Advertising decreases by 3 percent. percent d. Income increases by 2 percent. percent
Principles of Microeconomics
7th Edition
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter5: Elastic And Its Application
Section: Chapter Questions
Problem 6PA: Suppose that your demand schedule for DVDs is as follows: Price Quantity Demanded (income = 10,000)...
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Q.3.
Suppose the own price elasticity of demand for good X is −5, its income elasticity is 2, its advertising elasticity is 3, and the cross-price elasticity of demand between it and good Y is 6. Determine how much the consumption of this good will change if:
Instructions: Enter your responses as percentages. If you are entering a negative number, be sure to use a (−) sign.
a. The price of good X decreases by 4 percent.
percent
b. The price of good Y increases by 7 percent.
percent
c. Advertising decreases by 3 percent.
percent
d. Income increases by 2 percent.
percent
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