As observed in a certain appliance store when the price of electric fan increased from 1000 to 1200 the demand for air conditioners increased from 8 to 10 units. Calculate for the cross-price elasticity and indicate whether the two goods are complements or substitutes.

As observed in a certain appliance store when the price of electric fan increased from 1000 to 1200 the demand for air conditioners increased from 8 to 10 units. Calculate for the cross-price elasticity and indicate whether the two goods are complements or substitutes.

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter5: Elasticity Of Demand And Supply

Section: Chapter Questions

Problem 8QFR

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