21. There was a new store that opened besides your store if the cross elasticity for both of you is positive. Is it advisable to reduce your price? Why or why not? Explain

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Q: Suppose a consumer had an income of $100 and spends $50 on potatoes. Suppose now that his income…

A: Given information: Initial income: $100 Final income: $150 Initial spending (demand) on potatoes:…

Q: How do we call a good with income elasticity less than zero?

A: Income elasticity measures the change in quantity demanded to the change in income. It tells us by…

Q: Suppose the price elasticity of demand for bread is 0.5. If the price of bread falls by 5 percent,…

A: The price elasticity of demand provides information about the responsiveness of the consumer's…

Q: Mary buys 27 tuna sandwiches when her income is $37. Her income rises to $45 and now she buys 2 tuna…

A: Income elasticity of demand depicts how much buyer responds with the change in his/her income.

Q: What are two goods (or services) that you buy that have the highest Cross-Price Elasticity of…

A: Hello. Since your question has multiple parts, we will solve the first question for you. If you want…

Q: The income elasticity of demand for food is roughly 1. Suppose a consumer's monthly income is…

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Q: Your Assignment Instructions: In the Discussion Board Identify 3 items in your life that are elastic…

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Q: If the cross-price elasticity of demand of two goods is negative, what are those two goods called?

A: Cross price elasticity of demand means the magnitude of change in the quantity demanded for a given…

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A: In simple terms , price elasticity means percentage change in quantity demanded due to percentage…

Q: A 20% increase in income leads to a 10% decrease in the quantity of hot dogs demanded but the price…

A: % increase in income = 20% % decrease in quantity = 10% Price is same. so % change in price = 0

Q: quantity demanded decreases by 5%. Using our elasticity formula, calculate price elasticity and

A: Elasticity of demand depicts how much consumer responds with the change in the price level.

Q: 3.When Judy’s income increased from $130 to $170 a week, she increased her demand for concert…

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Q: There was a new store that opened besides your store if the cross elasticity for both of you is…

A: The cross price elasticity measures the relationship between demand for one good and the price of…

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A: Elasticity is a term used in economics to describe how the aggregate quantity demanded of an item or…

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A: Income Elasticity of demand = (% Change in Quantity demand) / (% Change in income)   Income…

Q: ast week, the price of envelopes was Php 150 a box, and Julie was willing to buy 10 boxes. Today,…

A: Last week price= php 150 No. of boxes=10 Today's price= php 175 No. of boxes= 8

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A: Answer: Answer: Introduction: Price elasticity of demand: it refers to the percentage change in…

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A: It has been said that the individual spends all his money income on these three goods.

Q: We can divide normal goods into two types: Those whose income elasticity is less than one and those…

A: The change in quantity demanded with a change in income is termed as income elasticity of demand. If…

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A: a. Given  The Price elasticity of demand for good X = -3 (Negative sign indicates that there is an…

Q: Problem 2: Last week, the price of envelopes was Php 150 a box, and Julie was willing to buy 10…

A: Price elasticity of demand refers to the responsiveness of quantity demanded to a change in the…

Q: Which type of elasticity is this?

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Q: Which of the following statements about elasticity is true Select one: O a. Values that are further…

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A: "Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Respond to the following in a minimum of 175 words: Compare and contrast the price elasticity of…

A: Elasticity measures the responsiveness of quantity to other variables. The price elasticity of…

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A: * SOLUTION :-

Q: If Neil's elasticity of demand for hot dogs is constantly 0.9, and he buys 4 hot dogs when the price…

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Q: .If someone told you the cross price elasticity between driving and riding the Metro is -5, this is…

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Q: Just based on general information you possess, do you think the demand for computers is likely to be…

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Q: Use the information below and Calculate the elasticity ,Determine the type of elasticity . 1. If the…

A: Price elasticity of demand measures the responsiveness of the quantity demanded of a product toward…

Q: Give two examples of elasticity information for two particular goods: one with an elastic demand and…

A: The price elasticity of demand measures the change in demand of a good or service in response to a…

Q: Suppose the own price elasticity of demand for good X is -2, its income elasticity is -1, its…

A: The cross elasticity of demand or cross-price elasticity of demand measures the percentage change of…

Q: f the cross-price elasticity of demand of two goods is 2.5, what would the two goods be?   Question…

A: cross price elasticity of demand  is the ratio of percentage change in quantity demanded of good one…

Q: The cross elasticity of demand between good X and good Y is estimated to be zero. Which combination…

A: Cross elasticity of demand depicts how much there is  change in quantity demand of a good when there…