Suppose the cross-price elasticity of demand between hot dogs and ketchup is -2.00, This implies that a20 pericent increase in the price of hot dogs will cause the quantity of ketchup purchased to: a. Fall by 200 percent beFall by 40 percent c. Rise by 200 percent d. Rise by 40 percent -2 -2 .2

Suppose the cross-price elasticity of demand between hot dogs and ketchup is -2.00, This implies that a20 pericent increase in the price of hot dogs will cause the quantity of ketchup purchased to: a. Fall by 200 percent beFall by 40 percent c. Rise by 200 percent d. Rise by 40 percent -2 -2 .2

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Q#8

Suppose the cross-price elasticity of demand between hot dogs and ketchup is -2.00,
This implies that a20 pericent increase in the price of hot dogs will cause the quantity
of ketchup purchased to:
a. Fall by 200 percent
beFall by 40 percent
c. Rise by 200 percent
d. Rise by 40 percent
-2
-2
.2

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