Q The quantity demanded or product X has increased by 10% in response to a 15% increase in price of product Y. Calculate the cross elasticity of demand and tell whether the product pair is (a) Voltas AC and Videocon AC or (b) Cars and Petrol and what you suggest for strategies the pricing policy.

Q The quantity demanded or product X has increased by 10% in response to a 15% increase in price of product Y. Calculate the cross elasticity of demand and tell whether the product pair is (a) Voltas AC and Videocon AC or (b) Cars and Petrol and what you suggest for strategies the pricing policy.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Solve the attahment.

Q The quantity demanded or product X has increased by 10% in response to a 15% increase in
price of product Y. Calculate the cross elasticity of demand and tell whether the product pair is
(a) Voltas AC and Videocon AC or (b) Cars and Petrol and what you suggest for strategies the
pricing policy.

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