Using the table below calculate the cross-price elasticity of flour with respect torice [4 marks]P1 P2 Q1 Q2Flour $9 $12 40 25Rice $4.45 $6.75 150 125
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Using the table below calculate the cross-price elasticity of flour with respect to
rice [4 marks]
P1 P2 Q1 Q2
Flour $9 $12 40 25
Rice $4.45 $6.75 150 125
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- (Determinants of Price Elasticity) Would the price elasticity of demand for electricity be more elastic over a shorter or a longer period of time?Can you think of an industry (or product) with near infinite elasticity of supply in the short term? That is, what is an industry that could increase Qs almost without limit in response to an increase in the price?What is the formula for line cross-price elasticity of demand?
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