Suppose the own price elasticity of demand for good X is -4, its income elasticity is -2, its advertising elasticity is 4, and the cross-priceelasticity of demand between it and good Y is 2. 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.percent

Suppose the own price elasticity of demand for good x is -4 , And it's income elasticity is -2 and…

Answered: Suppose the own price elasticity of…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Answer the following questions regarding elasticity When Jake’s income increases from $400 to $600 per week, his noodles consumption drops from 6 to 2 packets/week. What is the income elasticity of demand for noodles?
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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
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Suppose the own price elasticity of demand for good X is -4, its income elasticity is -2, its advertising elasticity is elasticity of demand between it and good Yis 2. Determine how much the consumption of this good will change