Suppose the own price elasticity of demand for good x is -2, Ask an Expert

Economics

Suppose the own price elasticity of demand for good X is -2, its income elasticity is 3, its advertising elasticity is 2, and the cross-price elasticity of demand between it and good Y is -4. Determine how much the consumption of this good will change if: Instructions: Enter your answers as percentages. Include a minus (-) sign for all negative answers.

a. The price of good X decreases by 6 percent.

b. The price of good Y increases by 8 percent.

c. Advertising decreases by 4 percent.

d. Income increases by 5 percent.

View complete question

Business Economics, Economics

Category:- Business Economics
Reference No.:- M91703298

Have any Question?Write your Review or question?

Related Questions in Business Economics

What is the fraction defective if material hardness is

What is the fraction defective if material hardness is normally distributed with a mean of 42 and a standard deviation of 1 and the specification limits for hardness are from 35 to 45? What value for the process mean wil ...

A coffee machine dispenses coffee into 8-ounce cups it can

A coffee machine dispenses coffee into 8-ounce cups. It can be regulated so that it discharges an average of μ ounces per cup. Suppose the amount of coffee dispensed is normally distributed with standard deviation .2 oun ...

Suppose there is no inflation and an insurance company

Suppose there is no inflation and an insurance company offers a contract that would pay $500,000 with certainty 50 years from now. What is the most that this contract would be worth today if: 1. The rate of interest is 7 ...

A real world example of a unfavorable result in an

A real world example of a unfavorable result in an experiment and what could have been done to avoid the outcome of the experiment?

What are the effects of changes in aggregate demand ad

What are the effects of changes in Aggregate Demand (AD) according to Keynesian Economic Theory? What is the role of the government in Keynesian economic theory? How does it differ from Classical and Neoclassical Economi ...

Income effects depend on the income elasticity of demand

Income effects depend on the income elasticity of demand for each good that you buy. If one of the goods you buy has a negative income elasticity, that is, it is an inferior good, what must be true of the income elastici ...

Assume that your business firm is a price taker and that

Assume that your business firm is a price taker and that the company sells widgets at $10 apiece. Your firm is maximizing profits. One of your engineers discovers the presence of a substitute input that enables you to cu ...

Why does a government undertakes expansionary fiscal

Why does a government undertakes expansionary fiscal policy? What are the problems of undertaking expansionary fiscal policy? When is fiscal policy more appropriate than monetary policy?

Is it possible to have no or very small collinearity and

Is it possible to have no (or very small) collinearity and correlation between variables, yet have the same R squared and Adjusted R squared values?

How would i find out this probability i keep getting -1 and

How would I find out this probability? I keep getting -1 and that is not the right answer. It says the right answer is 0.1587 but I dont see how For X~ Normal(100, 10), What would be the probability that x is less than 9 ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Business Economics Expert