The quantity of hot dogs buns demanded at a price of $1.59 increased from 100units to 130unite during the week that hot dogs went on sales for $1.89 rather than the regular price of $2.59. (a) what data points (P1 Q1) (P1 Q2) would you use to calculate the cross elasticity of demand for hot dogs and buns? (b) would the cross elasticity of demand be positive, zero or negative? What does this represent in economics terms? (c) the next time hot dogs went on sales, the price of buns was increased to $1.79 and only 120 buns was sold. Was this a good business decision? Why/why not?
The quantity of hot dogs buns demanded at a price of $1.59 increased from 100units to 130unite during the week that hot dogs went on sales for $1.89 rather than the regular price of $2.59. (a) what data points (P1 Q1) (P1 Q2) would you use to calculate the cross elasticity of demand for hot dogs and buns? (b) would the cross elasticity of demand be positive, zero or negative? What does this represent in economics terms? (c) the next time hot dogs went on sales, the price of buns was increased to $1.79 and only 120 buns was sold. Was this a good business decision? Why/why not?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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The quantity of hot dogs buns demanded at a
(a) what data points (P1 Q1) (P1 Q2) would you use to calculate the cross elasticity of
(b) would the cross elasticity of demand be positive, zero or negative? What does this represent in economics terms?
(c) the next time hot dogs went on sales, the price of buns was increased to $1.79 and only 120 buns was sold. Was this a good business decision? Why/why not?
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