Question
When the price of Ford pickup trucks rises from $18,000 to $19,000, the quantity of Chevy...
When the price of Ford pickup trucks rises from $18,000 to $19,000,
the quantity of Chevy trucks demanded increases from 112,000 to
144,000. What is the cross elasticity of demand between Ford and
Chevy trucks?
Homework Answers
Answer #1
Price of Ford pickup trucks rises from $ 18,000 to $ 19,000.
Chevy truck quantity demanded increases from 112,000 to 144,000.
The cross elasticity demanded can be measured using the following formula
Plug in the given values we get
Cross elasticity of demand = 4.625
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