Question
1.Suppose the own price elasticity of demand for good X is -2, its income elasticity is 2.5, and the cross-price elasticity of demand between it
1.Suppose the own price elasticity of demand for good X is -2, its income elasticity is 2.5, and the cross-price elasticity of demand between it and good Y is -5.
A.Interpret the elasticity coefficients.
B.Determine how much consumption of this good will change if:
B.1 The price of good X increases by 6%.
B.2 The price of good Y increases by 12%.
B.3 Income falls by 5%.
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Economics
Authors: R. Glenn Hubbard
6th edition
978-0134797731, 134797736, 978-0134106243
