In this question, you'll deal with two goods, and you'll have to solve for cross-price elasticity using the percent change formula. When the old price of a file cabinet was $1,039 per cabinet, an old quantity of 228 desks were sold. After the price decreased to a new price of $854 per file cabinet, a new quantity of 381 desks were sold. Using these numbers, what is the cross-price elasticity of file cabinets for desks? Round your answer to 3 decimal places.

In this question, you'll deal with two goods, and you'll have to solve for cross-price elasticity using the percent change formula. When the old price of a file cabinet was $1,039 per cabinet, an old quantity of 228 desks were sold. After the price decreased to a new price of $854 per file cabinet, a new quantity of 381 desks were sold. Using these numbers, what is the cross-price elasticity of file cabinets for desks? Round your answer to 3 decimal places.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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