Question #53513
The price elasticity of demand for good X is known to be twice that of good Y. Price of X falls by 5%. Find the % change in X & Y quantities.
1
Expert's answer
2015-07-22T00:00:43-0400
If the price elasticity of demand for good X is known to be twice that of good Y and the price of X falls by 5%, then the quantity of good X will rise by 5%*EdX and the quantity of good Y will rise by 5%*0.5*EdX.

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