4) Firm A sells products x and z; the first, at a price of $ 30, sells 200 units and the well z manages to sell 400 units. To increase his sales, he decides to lower the price from x to $ 20, but this variation produces a decrease in the sale of z to 80 units: a) Calculate the cross elasticity b) What kinds of goods are x and z between them? Explain why. c) Give 2 examples of these types of goods.

4) Firm A sells products x and z; the first, at a price of $ 30, sells 200 units and the well z manages to sell 400 units. To increase his sales, he decides to lower the price from x to $ 20, but this variation produces a decrease in the sale of z to 80 units: a) Calculate the cross elasticity b) What kinds of goods are x and z between them? Explain why. c) Give 2 examples of these types of goods.

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter5: Elasticity Of Demand And Supply

Section: Chapter Questions

Problem 4.9P: (Other Elasticity Measures) Complete each of the following sentences: a. The income elasticity of...

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