ENGR.ECONOMIC ANALYSIS
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ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Transcribed Image Text:3. Problem 3
Consider that the own price elasticity of demand for X is -0.5, income elasticity is 1,
advertising elasticity is 1.5, and cross price elasticity between X and Y is 2.
3.1 Determine the change in consumption of X if the Px decreases by 3 percent.
3.2 Determine the change in consumption of X if the Py increases by 5 percent.
3.3 Determine the change in consumption of X if advertising decreases by 3 percent.
3.4 Determine the change in consumption of X if income increases by 5 percent.
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