The store selling rice makes a further discovery, when the price of couscous changes from R30 per kg to R26 per kg, then the quantity of rice demanded decreases from 1360 kg per month to 1238 kg per month. Use this information to answer Q.3.2.1 and Q.3.2.2 below. Q.3.2.1 Use the point method to calculate the cross elasticity of demand for these products. Q.3.2.2 Comment on the significance of your solution in Q.3.2.1.

The store selling rice makes a further discovery, when the price of couscous changes from R30 per kg to R26 per kg, then the quantity of rice demanded decreases from 1360 kg per month to 1238 kg per month. Use this information to answer Q.3.2.1 and Q.3.2.2 below. Q.3.2.1 Use the point method to calculate the cross elasticity of demand for these products. Q.3.2.2 Comment on the significance of your solution in Q.3.2.1.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Can you use mid-point formula to get this answer? Or we can't use that? Or thatst wrong?
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