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A rm uses two substitutable inputs A and B. Their cross-price elasticity of demand is 2.1. The current per unit prices of these inputs are
A rm uses two substitutable inputs A and B. Their cross-price elasticity of demand is 2.1. The current per unit prices of these inputs are $100 and $80, respectively. At these prices, the rm uses 2000 units of input Aand 1500 units of input B. If the price of input B decreases by 2%, how many units of input A will this rm use? (your answer must be rounded off to the whole number, i.e., no decimal places)
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