The store selling rice makes a further discovery, when the price of couscous changes from R30 per kg to R26 per kg, then the quantity of rice demanded decreases from 1360 kg per month to 1238 kg per month. Use this information to answer Q.3.2.1 and Q.3.2.2 below. Q.3.2.1 Use the point method to calculate the cross elasticity of demand for these products. Q.3.2.2 Comment on the significance of your solution in Q.3.2.1.
The store selling rice makes a further discovery, when the price of couscous changes from R30 per kg to R26 per kg, then the quantity of rice demanded decreases from 1360 kg per month to 1238 kg per month. Use this information to answer Q.3.2.1 and Q.3.2.2 below. Q.3.2.1 Use the point method to calculate the cross elasticity of demand for these products. Q.3.2.2 Comment on the significance of your solution in Q.3.2.1.
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter5: Elastic And Its Application
Section: Chapter Questions
Problem 7PA: Suppose that your demand schedule for pizza is as follows: a. Use the midpoint method to calculate...
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