Reflection Journal for B220 Microeconomics Lesson 5 Product X and Y are produced and sold by 2 different companies. Suppose the Price and Income Elasticities of Demand for Product X is -2.5 and -0.5 respectively, and its cross elasticity of demand when price of Product Y change is -2.0. The manager of Product X is worried as he heard that price of Product Y will decrease by 5% in response to the current recession whereby income of the population decreases by 10%, and he believes that his revenue will be badly affected. Discuss whether the manager of Product X should be worried using the concepts of elasticity of demand. Support your answers with relevant graphs. 250 words essay

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