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Economics

Question: A recent study has determined the following elasticities for apples. Use this elasticity information to answer the questions below.

Price elasticity of demand for apples is -2.5

Cross price elasticity of demand between apples and pears is 1.5I

ncome elasticity of demand for apples is 3.

a. What would be the percentage change in apple unit sales if the price of applesdecreased by 10%?

b. What would be the percentage change in apple unit sales if the price of pears increasedby 5%?

c. What would be the percentage change in apple unit sales if income fell by 5%?

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M92583227

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