When the price of photocopiers increases by 13%, the associated change in printers demanded is 6%. You don't know if this is an increase or decrease in the quantity demanded of printers, but you know that photocopiers and printers are substitutes. Use that information to calculate the cross-price elasticity of demand for printers. Remember, for some elasticities, we take the absolute value. For others, we do not. Include a negative sign if needed.

When the price of photocopiers increases by 13%, the associated change in printers demanded is 6%. You don't know if this is an increase or decrease in the quantity demanded of printers, but you know that photocopiers and printers are substitutes. Use that information to calculate the cross-price elasticity of demand for printers. Remember, for some elasticities, we take the absolute value. For others, we do not. Include a negative sign if needed.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter6: Elasticities

Section: Chapter Questions

Problem 1P

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