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Change in demand

Suppose the price elasticity of demand for cigarettes is - 0.46 in the short run and -1.89 in the long run, the income elasticity of demand for cigarettes is 0.50 and the cross-price elasticity of demand between cigarettes and alcohol is -0.70 Suppose also that the price of cigarettes, the income of consumers, and the price of alcohol all increase by 10 %. find out by how much the demand for cigarettes will change in the (a) short run and (b) long run.

 

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M925941

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