Question

Suppose the
cross-price elasticity of demand between goods *X* and
*Y* is -5. How much would the price of good *Y* have
to change in order to change the consumption of good *X* by
50 percent?

**Instruction:** If you are entering a negative
number, be sure to use a negative sign (-).

_________percent

Answer #1

Cross-price elasticity of demand= % change in the quantity demand/ % change in the price

When the cross-price elasticity demand sign is positive, then both goods will be substitute goods.

Cross-price elasticity of demand= % change in the quantity demand/ % change in the price.

Since the given cross-price
elasticity of demand between goods *X* and *Y* is
-5.

% change in the consumption of
good *X*
= +50 percent

Cross-price elasticity of demand= % change in the quantity demand/ % change in the price.

-5= 50%/ % change in the price.

% change in the price=50%/(-5%)

=(-)10%

It means price should change by=(-)10%

Suppose the cross-price elasticity of demand between goods X and
Y is 5. How much would the price of good Y have to change in order
to change the consumption of good X by 20 percent? percent

Suppose the own price elasticity of demand for good X is -5, its
income elasticity is -1, its advertising elasticity is 4, and the
cross-price elasticity of demand between it and good Y is 3.
Determine how much the consumption of this good will change if:
Instructions: Enter your responses as percentages. Include a minus
(-) sign for all negative answers.
a. The price of good X decreases by 6 percent.
percent
b. The price of good Y increases by...

Suppose the own price elasticity of demand for good X is -5, its
income elasticity is 1, its advertising elasticity is 3, and the
cross-price elasticity of demand between it and good Y is 4.
Determine how much the consumption of this good will change if:
a) The price of good X decreases by 5 percent.
_____%
b) The price of good Y increases by 8 percent.
_____%
c) Advertising decreases by 2 percent. _____%
d) Income increases by 4...

Suppose the own price elasticity of demand for good X is -3, its
income elasticity is -2, its advertising elasticity is 4, and the
cross-price elasticity of demand between it and good Y is -2.
Determine how much the consumption of this good will change if:
Instructions:
Enter your responses as percentages. Include a minus (-)
sign for all negative answers.
a. The price of good X decreases by 7 percent.
b. The price of good Y increases by 10...

Suppose the own price elasticity of demand for good X is -2, its
income elasticity is -1, its advertising elasticity is 2, and the
cross-price elasticity of demand between it and good Y is -3.
Determine how much the consumption of this good will change if:
Instructions: Enter your responses as percentages. Include a minus
(-) sign for all negative answers.
a. The price of good X decreases by 4 percent. percent
b. The price of good Y increases by...

If goods X and Y are substitute goods, then the cross-price
elasticity of the price of good Y on the demand
for good X is:
Select one:
a. positive
b. zero
c. undefined
d. negative

The cross-price elasticity of demand between goods X and Y
measures the responsiveness of the quantity of X demanded to
changes in the price of Y.
is the percentage change in the price of Y divided by the
percentage change in the quantity of X demanded.
is greater than zero if X and Y are substitutes.
both a and c
all of the above

If the cross-price elasticity of demand between two goods is
-0.5, two goods are __________. If the income elasticity of a good
is -2, that good is a ___________.
Substitutes: Normal good
Complements: Inferior
Complements: Necessity
Substitutes: Luxury

Suppose the cross-price elasticity of demand between Coke and
Pepsi is 0.5. If the price of Pepsi is projected to go up 10%, how
much will the demand for Coke change?

If the cross-price elasticity of demand between Good A and Good
B is 3, the price of Good B increases, and the price elasticity of
demand for Good B is inelastic, we can expect to see a ________
change in the quantity demanded for Good A.
a.positive, zero
b.positive, small
c.positive, large
d.negative, one-for-one negative,
e.infinite

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 4 minutes ago

asked 6 minutes ago

asked 20 minutes ago

asked 47 minutes ago

asked 55 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 2 hours ago

asked 2 hours ago