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The market demand for wheat is Q=100-2p+ 1p, where p is the price of barley. If the price of wheat is $2 and the price of barley is $4, the cross-price elasticity of demand

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 market demand for wheat is Q-100-2p+ 1p where p is the price of barley. If the price of wheat is $2 and the price of barley is $4, the cross-price elasticity of demand
OA. equals (-2/100).
OB. equals (-4/25).
C. equals (4/100).
OD. cannot be calculated without more information.

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