When the price of butter increases from $1 to $2, the quantity demand of margarine increases from 6 to 8. What is the cross-price elasticity of demand? A) (6-8)/8 (1-2)/2 B) (8-6)/6 (2-1) C)(1-2)/2 (8-6)/6 D) (2-1) (6-8)

When the price of butter increases from $1 to $2, the quantity demand of margarine increases from 6 to 8. What is the cross-price elasticity of demand? A) (6-8)/8 (1-2)/2 B) (8-6)/6 (2-1) C)(1-2)/2 (8-6)/6 D) (2-1) (6-8)

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

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Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

1. When the price of butter increases from $1 to $2, the quantity demand of margarine
increases from 6 to 8. What is the cross-price elasticity of demand?
A) (6-8)/8
(1-2)/2
(8-6)/6
(2-1)/₁
(1-2)/2
(8-6)/
B)
D) (2-1)/₁
(6-8)/8

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