Suppose the own price elasticity of demand for good X is -4, 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 answers 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 7 percent. percent c. Advertising decreases by 4 percent. percent d. Income increases by 3 percent. percent

Suppose the own price elasticity of demand for good X is -4, 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 answers 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 7 percent. percent c. Advertising decreases by 4 percent. percent d. Income increases by 3 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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Question

Suppose the own price elasticity of demand for good X is -4, 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 answers as percentages. Include
minus (-) sign for all negative answers.
a. The price of good X decreases by 6 percent.
percent
b. The price of good
'increases by 7 percent.
percent
C. Advertising decreases by 4 percent.
percent
d. Income increases by 3 percent.
percent

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