Question
1. Suppose the price of salt increases by 10 percent and, as a result, the quantity of pepper demanded (holding the price of pepper constant)
1. Suppose the price of salt increases by 10 percent and, as a result, the quantity of pepper demanded (holding the price of pepper constant) increases by 1 percent. The cross-price elasticity of demand between salt and pepper is ___
2. Suppose income increases by 10 percent and, as a result, the quantity of a particular brand of automobile demanded (holding the price for this particular automobile constant) decreases by 15 percent. The income elasticity of demand for this brand of car is ___
3. Suppose that legalizing the use of marijuana would decrease its price by 83 percent. If the price elasticity of demand for marijuana is -2.75, what would be the percentage increase in the quantity of marijuana demanded from legalizing marijuana?
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