The cross price elasticity between two goods is +0.9, the initial prices of the two goods are P1=$2 and P2 = $3, the initial quantities of the goods are Q1 = 10,000 and Q2 = 8000. Calculate the new amount of Q2 demanded if P1 increases to $2.75

The cross price elasticity between two goods is +0.9, the initial prices of the two goods are P1=$2 and P2 = $3, the initial quantities of the goods are Q1 = 10,000 and Q2 = 8000. Calculate the new amount of Q2 demanded if P1 increases to $2.75

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

The cross price elasticity between two goods is +0.9, the initial prices of the two goods are P1 = $2 and P2 = $3, the initial
quantities of the goods are Q1 = 10,000 and Q2=8000. Calculate the new amount of Q2 demanded if P1 increases to $2.75
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