Answered: A 50% increase in the price of oak wood…

A 50% increase in the price of oak wood has increased the quantity demanded of pine wood by 10%. What is the cross-price elasticity of demand of pine wood over oak wood? A) 0.1 B) 0.2 C) 0.5 D) 5

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter5: Price Elasticity Of Demand And Supply

Section: Chapter Questions

Problem 4SQP

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Question

A 50% increase in the price of oak wood has increased the quantity demanded of
pine wood by 10%. What is the cross-price elasticity of demand of pine wood over oak wood?

A) 0.1

B) 0.2

C) 0.5

D) 5

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