The table below shows the values of different elasticities of demand for good J at the market equilibrium price. Price elasticity (absolute value) 0.75 Cross-price elasticity with respect to good X 0.8 Cross-price elasticity with respect to good Y 2 Cross-price elasticity with respect to good Z -2.5 Income elasticity -0.5 Which of the following would result in the greatest rightward shift of the demand curve for good J? A A 50% decrease in the price of good J. в A 20% increase in the price of good X. A 10% increase in the price of good Y. D A 10% increase in the price of good Z. A 10% decrease in income.

The table below shows the values of different elasticities of demand for good J at the market equilibrium price. Price elasticity (absolute value) 0.75 Cross-price elasticity with respect to good X 0.8 Cross-price elasticity with respect to good Y 2 Cross-price elasticity with respect to good Z -2.5 Income elasticity -0.5 Which of the following would result in the greatest rightward shift of the demand curve for good J? A A 50% decrease in the price of good J. в A 20% increase in the price of good X. A 10% increase in the price of good Y. D A 10% increase in the price of good Z. A 10% decrease in income.

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question 1
The table below shows the values of different elasticities of demand for good J at the market equilibrium price.
Price elasticity (absolute value)
0.75
Cross-price elasticity with respect to good X
0.8
Cross-price elasticity with respect to good Y
2
Submit
Cross-price elasticity with respect to good Z
-2.5
Income elasticity
-0.5
Which of the following would result in the greatest rightward shift of the demand curve for good J?
A
A 50% decrease in the price of good J.
B
A 20% increase in the price of good X.
A 10% increase in the price of good Y.
D
A 10% increase in the price of good Z.
E
A 10% decrease in income.

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