Ask Question
1 April, 16:06

If the cross-price elasticity between Good A and Good B is - 1.5 and the percentage change in quantity demanded of Good B is 15 percent, what is the percentage change in the price of Good A? a. - 10 percent b. - 0.10 percent c. - 11.50 percent d. - 1 percent e. 11.50 percent

+4
Answers (1)
  1. 1 April, 16:31
    0
    Option (a) is correct.

    Explanation:

    Given that,

    Cross-price elasticity between Good A and Good B = - 1.5

    Percentage change in quantity demanded of Good B = 15 percent

    Cross-price elasticity = Percentage change in quantity demanded of Good B : Percentage change in the price of Good A

    -1.5 = 15 : Percentage change in the price of Good A

    Percentage change in the price of Good A = 15 : (-1.5)

    = - 10 percent
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “If the cross-price elasticity between Good A and Good B is - 1.5 and the percentage change in quantity demanded of Good B is 15 percent, ...” 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