Question #314725

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


1
Expert's answer
2022-03-20T17:18:15-0400

5=0.5ΔP-5=\frac{0.5}{\Delta P}


ΔP=0.1\Delta P=-0.1





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