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A 20 percent rise in the price of Good S results in the following: GOOD Percentage change in quantity demanded T Increase by 50% U
A 20 percent rise in the price of Good S results in the following:
GOOD | Percentage change in quantity demanded |
T | Increase by 50% |
U | Decrease by 30% |
V | Remains the same |
- Calculate cross elasticity of demand between Good S and
- Good T
Cross elascity between Good S and Good T= % change in T / % change in S
- Good U
- Good V
- Name the relationships between good S and each of the other goods.
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