Calculate the Cross-Price Elasticity of the following goods and say whether they are compliment's or substitutes. A. When there is a 20% decrease in the quantity of peanut butter when the price of jelly increased by 40%. B. When there was a drop in the quantity demanded of Samsung phones from 600,000 to 400,000 when apple decreased the price of the Iphone from $199 to $99.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
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3
Calculate the Cross-Price Elasticity of the
following goods and say whether they are
compliment's or substitutes.
A. When there is a 20% decrease in the quantity of
peanut butter when the price of jelly increased by
40%.
B. When there was a drop in the quantity
demanded of Samsung phones from 600,000 to
400,000 when apple decreased the price of the
Iphone from $199 to $99.
3. Calculate the Cross-Price Elasticity of the following goods and say whether they are
Complements or Substitutes.
A. When the there is a 20% decrease in the quantity of peanut butter when the price
of jelly increased by 40%.
B. When there was a drop in the quantity demanded of Samsung phones from
600,000 to 400,000 when Apple decreased the price of the iPhone from $199 to
$99.
Transcribed Image Text:Calculate the Cross-Price Elasticity of the following goods and say whether they are compliment's or substitutes. A. When there is a 20% decrease in the quantity of peanut butter when the price of jelly increased by 40%. B. When there was a drop in the quantity demanded of Samsung phones from 600,000 to 400,000 when apple decreased the price of the Iphone from $199 to $99. 3. Calculate the Cross-Price Elasticity of the following goods and say whether they are Complements or Substitutes. A. When the there is a 20% decrease in the quantity of peanut butter when the price of jelly increased by 40%. B. When there was a drop in the quantity demanded of Samsung phones from 600,000 to 400,000 when Apple decreased the price of the iPhone from $199 to $99.
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