Ask Question
30 October, 07:59

If the price falls by 50% and the quantity demanded falls by 25%, find cross price elasticity of demand

+3
Answers (1)
  1. 30 October, 08:16
    0
    Simply divide the percentage change in the quantity demand with the percentage change in price, giving you a positive value of 0.5. This shows that it is inelastic and the two goods are substitutes to each other.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “If the price falls by 50% and the quantity demanded falls by 25%, find cross price elasticity of demand ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers