When the price of photocopiers increases by 13%, the associated change in printers demanded is 6%. You don't know if this is an increase or decrease in the quantity demanded of printers, but you know that photocopiers and printers are substitutes. Use that information to calculate the cross-price elasticity of demand for printers.
When the price of photocopiers increases by 13%, the associated change in printers demanded is 6%. You don't know if this is an increase or decrease in the quantity demanded of printers, but you know that photocopiers and printers are substitutes. Use that information to calculate the cross-price elasticity of demand for printers.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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When the
in printers demanded is 6%. You don't know if this is an increase or
decrease in the quantity demanded of printers, but you know that
photocopiers and printers are substitutes. Use that information to
calculate the cross-
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