Business

3 August, 18:22

Suppose the own price elasticity of demand for good X is - 3, its income elasticity is - 3, 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 in percentage if:

a. The price of good X decreases by 7 percent.

b. The price of good Y increases by 9 percent.

c. Advertising decreases by 2 percent.

d. Income increases by 5 percent.

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