Assume that the percentage increase in the price of product X ( %ΔPx) is 4% and the percentage change in quantity demanded in product Y ( %Δqd) is -5%, find the cross price elasticity (Eyx), are product X and Y substitutes or complements?

Q: If 45 units are sold at a price of $15 and 75 units are sold at a price of $10, what is the absolute…

A: Price elasticity of demand refers to the proportion extrade in the amount of demand that…

Q: Assume that in Country A, the average annual income of a typical person is $300,000. The annual…

A: The price elasticity of demand measures the responsiveness of quantity demanded to a change in…

Q: State the cross price elasticity (of demand). Suppose the price of a good (X) is RM5, now the price…

A: Any two goods can be related to each other in the following two ways : complementary and substitute.…

Q: The cross price elasticity of demand captures the percent change in the (quantity demanded, price)…

A: The XED is a concept which measures how the Q of one good changes in response to a change in the P…

Q: The price elasticity of supply is 1.2​, and price increases by 4 percent. As a​ result, the quantity…

A: The ratio between change in quantity of a good supplied and a change in determinants of supply is…

Q: Suppose the price elasticity of demand for good A is 1.25. If the price of good A increases by 10%,…

A: Price elasticity of demand is the responsiveness of change in quantity demanded of good due to the…

Q: What is the price elasticity of demand for a good that experiences a 10% increase in price resulting…

A: The percentage change in the price of the good : 10% increase.The corresponding percentage change in…

Q: If a manufacturer sets the price of the good at $ 10, he can sell 300 of this item in a year. If the…

A: I) Arc elasticity of demand  Ed= % change in quantity demanded/% change in price     =…

Q: of 45 units are sold at a price of $15 and 75 units are sold at a price of $10, what is the absolute…

A: Introduction Price elasticity of demand indicates the degree of responsiveness of quantity demanded…

Q: The price of a good decreased from $40 to $10. The initial quantity demanded is 400 Assuming a…

A: Percent change in price =p2-p1/(p2+p1)/2*100 =40-10/50/2*100 =30/50/2*100=0.6/2*100 =0.3*100=30

Q: If the absolute value of the price elasticity of demand for cell phone service is 3, then if the…

A: Demand is the willingness and ability of consumers for consuming and buying goods and services at…

Q: - The demand for a good at 7 10 per unit is 40 units. Price falls by * 5. If price elasticity of…

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Q: If the price elasticity of demand of for gasoline is 1.8, then a 15% decrease in quantity demanded…

A: Price elasticity of demand is the measurement of change in quantity demanded with the change in…

Q: Suppose the price of color print film has recently risen by 10% due to an increase in the cost of…

A: When the increase in price of one good lead to decrease in demand for other good then they are…

Q: Suppose the quantity demanded of good x has increased from 60 to 80 units, due to a decrease in its…

A: The responsiveness of change in quantity demanded owing to a change in the price of the good is…

Q: If the price elasticity of supply is 0.6, and a price increase led to a 3.7 percent increase in…

A: The objective of the question is to calculate the percentage increase in price given the price…

Q: The cross price elasticity between two goods is +0.9, the initial prices of the two goods are P1 =…

A: The cross-price elasticity measures the correlation between the price of one good and the quantity…

Q: Calculate price elasticity of demand if quantity demanded fell from 50 to 35, which corresponds with…

A: Elasticity of demand depicts how much consumer responds with the change in the price level.

Q: if the price elasticity of demand for a product is 2.5, then a price cut from $2.00 to $1.80 will: (…

A: The objective of the question is to determine the effect of a price cut on the quantity demanded for…

Q: A consumer buys 100 units of a good at a price of 8 per unit if the price elasticity of demand is -2…

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Q: Suppose that an increase in the price of rice from $2/bag to $2.50/bag decreases the quantity of…

A: A good's price elasticity of demand is a measure of how sensitive the quantity demanded is to its…

Q: Suppose the cross-price elasticity of demand between goods X and Y is −3. How much would the price…

A: Elasticity of Demand: The idea of elasticity of demand for a provided product shows the % change in…

Q: If the quantity demanded of good X has increased from 10 to 18 units due to the increase in the…

A: Elasticity measures the responsiveness of quantity demanded with respect to changes in price.

Q: Demand for carpet cleaner rentals at a rental store is described by the equation: Q = 4,000 - 500P,…

A: Elasticity of demand measures the responsiveness of quantity demanded to changes in the price…

Q: The price of a good decreased from $35 to $15. The initial quantity demanded is 240 Assuming a…

A: PED= [(Q2−Q1)/(Q2+Q1)/2] / [(P2−P1)÷(P2+P1)/2]  PED = Price elasticity of demand = 1  P1 = Initial…

Q: If the cross-price elasticity between coffee and cream is equal to -0.5, then a 10% increase in the…

A: An index that assesses how the quantity (Q) demanded of one good responds to changes in the price…

Q: Data from the Bureau of Labor Statistics shows that U.S. income increased by 10% while consumer data…

A: Change in income=10% Change in quantity demanded=∆in quantity demandedInitial quantity…

Q: Suppose the price elasticity of demand for coke is −3 and the cross-price elasticity of demand…

A: Given information: Price elasticity of demand for coke = -3 Cross price elasticity of demand between…

Q: If an increase in price from $2 to $4 causes a decrease in quantity demanded from 140 to 100,…

A: Price elasticity of demand = (percent change in quantity demanded) / (percent change in price)First,…

Q: The demand for a product is unit elastic. At a price of $20, 10 units of a product are sold. If the…

A: Price elasticity of demand is the change in quantity demanded for every unit change in the price of…

Q: The demand for commodity X fell from 1000 units to 800 units. When the income of the consumer…

A: Income elasticity of demand: It is the measurement of the change in the change in the quantity…

Q: The quantity demanded of a commodity at price 8 per unit is 600 units. Its price falls by 25% and…

A: Given percentage decrease in price = 25% Initial quantity = 600 units Final quantity = 120 units

Q: When the price of a good is $6, the quantity demanded is 50 units per month; when the price is $8,…

A: Arc price elasticity refers the change in demand due to change in price so the calculation of the…

Q: quantity demanded for product A increases 8% when the price of product B increases 16% and the other…

A: The ‘cross price elasticity’ of demand refers to the percentage(%) change in quantity(Q) demanded of…

Q: f the price elasticity of demand for a good is 4, then a 12 percent decrease in price results in a…

A: The elasticity of demand:The elasticity of demand is calculated as the proportional change in…

Q: Suppose that the price elasticity of demand for a packet of cigar is -0.85 and the price elasticity…

A: Price elasticity of demand refers to the responsiveness of quantity demanded to a change in the…