Suppose the own price elasticity of demand for good X is -3, its income elasticity is 1, its advertising elasticity is 2, and the cross-price elasticity of demand between it and good Yis -4. Determine how much the consumption of this good will change if: Instructions: Enter your responses as percentages. If you are entering a negative number, be sure to use a (-) sign. a. The price of good X decreases by 5 percent. 15 percent b. The price of good Yincreases by 10 percent. percent c. Advertising decreases by 3 percent. percent

Suppose the own price elasticity of demand for good X is -3, its income elasticity is 1, its advertising elasticity is 2, and the cross-price elasticity of demand between it and good Yis -4. Determine how much the consumption of this good will change if: Instructions: Enter your responses as percentages. If you are entering a negative number, be sure to use a (-) sign. a. The price of good X decreases by 5 percent. 15 percent b. The price of good Yincreases by 10 percent. percent c. Advertising decreases by 3 percent. percent

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Please help with following question Suppose the own price elasticity of demand for good X is -4, its income elasticity is 2, its advertising elasticity is 3, and the cross price elasticity of demand between it and good Y is -6. Determine how much the consumption of this good will change if: The price of good X increases by 10%. The price of good Y decreases by 5%. Advertising increases by 14%. Income decreases by 8%. thanks
Give typing answer with explanation and conclusion
Solve all questions compulsory.....
An individual gets a raise, increasing their income by 2.5%. As a result, their consumption ofa certain good decreases by 1%. What is the income elasticity of demand for this good? Is thisa normal good, inferior good, both or neither for this individual?
gold Compare and contrast the income elasticity of demand for gold bracelets (ngola bracelets) and the income elasticity of demand for shampoo (n Explain using 1-2 sentences. Shampoo). Which product's income elasticity of demand is higher?
Alex's income has increased from 3000Php. to 5000Php. Alex increased his consumption of CD from 4 to 8 a month and decreased his consumption of cakes from 12 to 6 a month. Calculate his income elasticity of demand for CD using point method. * Your answer
TRUE OR FALSE *If change in quantities demanded and supplied is greater than the change in price, then they type of elasticity of D and s is elastic. *Good has unitary type of elasticity id change in quantities demanded and supplied are equal. *If the product has more close substitutes, the elasticity demand and supplied is inelastic.
a. You are using a low quality mobile phone which costs low and you can afford it within yourcurrent income. Now suppose your income increases then what effect will it have on yourconsumption of this type of mobile phone? Explain it with diagram. b. If prices of cricket ball increased then what effect will it have on bats? What type of elasticityis this? Explain in detail with diagram.
6. The demand for coffee is given by the function: Q = 8.5-p-0.3p + 0.1Y, where p is the price of coffee, ps is the price of sugar, and Yis consumer income. a. Calculate the income elasticity of demand when Q = 10 and Y = 30 and interpret your answer. b. Calculate the cross-price elasticity of demand when Q = 1 and P = 0.6 and interpret your answer.
Suppose the cross-price elasticity of café latte to the price of milk is -0.6. If the price ofmilk rises by 20%, what happens to the quantity of lattes demanded? What can you say aboutthe relationship of these two goods?
Suppose the own price elasticity of demand for good X is -2, its income elasticity is -1, its advertising elasticity is 2, and the cross- price elasticity of demand between it and good Yis-3. Determine how much the consumption of this good will change it Instructions: Enter your responses as percentages. If you are entering a negative number, be sure to use a (-) sign. a. The price of good X decreases by 4 percent. percent b. The price of good Y increases by 10 percent. percent c. Advertising decreases by 3 percent. percent d. Income increases by 2 percent. percent
I need the answer as soon as possible