Suppose the own price elasticity of demand for good X is -2, its income elasticity is 3, 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:Instructions: Enter your responses as percentages. Include a minus (-) sign for all negative answers.a. The price of good X decreases by 6 percent. percentb. The price of good Y increases by 8 percent. percentc. Advertising decreases by 4 percent. percentd. Income increases by 5 percent. percent
Suppose the own price elasticity of demand for good X is -2, its income elasticity is 3, 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:Instructions: Enter your responses as percentages. Include a minus (-) sign for all negative answers.a. The price of good X decreases by 6 percent. percentb. The price of good Y increases by 8 percent. percentc. Advertising decreases by 4 percent. percentd. Income increases by 5 percent. percent
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter5: Elastic And Its Application
Section: Chapter Questions
Problem 7PA: Suppose that your demand schedule for pizza is as follows: a. Use the midpoint method to calculate...
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Suppose the own
Instructions: Enter your responses as percentages. Include a minus (-) sign for all negative answers.
a. The price of good X decreases by 6 percent.
percent
b. The price of good Y increases by 8 percent.
percent
c. Advertising decreases by 4 percent.
percent
d. Income increases by 5 percent.
percent
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