4. Suppose the own price elasticity of demand for good X is -3, its income elasticity is 1, its advertising elasticity is 2, and the cross-price elasticity of demand between it and good Y is -4. Determine how much the consumption of this good will change if: (LOI) a. The price of good X decreases by 5 percent. b. The price of good Y increases by 8 percent. c. Advertising decreases by 4 percent. d. Income increases by 4 percent.
4. Suppose the own price elasticity of demand for good X is -3, its income elasticity is 1, its advertising elasticity is 2, and the cross-price elasticity of demand between it and good Y is -4. Determine how much the consumption of this good will change if: (LOI) a. The price of good X decreases by 5 percent. b. The price of good Y increases by 8 percent. c. Advertising decreases by 4 percent. d. Income increases by 4 percent.
Chapter1: Making Economics Decisions
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![4. Suppose the own price elasticity of demand for good X is -3, its income elasticity is I,
its advertising elasticity is 2, and the cross-price elasticity of demand between it and
good Y is -4. Determine how much the consumption of this good will change if: (LO1)
a. The price of good X decreases by 5 percent.
b. The price of good Y increases by 8 percent.
e. Advertising decreases by 4 percent.
d. Income increases by 4 percent.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F104a8480-82b9-441a-bbf0-43338b723241%2F8cc7d1d2-ab32-4a50-b92c-4db60b87f3b2%2Fszvgwq9_processed.jpeg&w=3840&q=75)
Transcribed Image Text:4. Suppose the own price elasticity of demand for good X is -3, its income elasticity is I,
its advertising elasticity is 2, and the cross-price elasticity of demand between it and
good Y is -4. Determine how much the consumption of this good will change if: (LO1)
a. The price of good X decreases by 5 percent.
b. The price of good Y increases by 8 percent.
e. Advertising decreases by 4 percent.
d. Income increases by 4 percent.
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