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B. Suppose the own price elasticity of demand for good X is -2, its income elasticity is 3, its advertising elasticity is 4, and the
B. Suppose the own price elasticity of demand for good X is -2, its income elasticity is 3, its advertising elasticity is 4, and the cross-price elasticity of demand between it and good Y is -6.
Determine how much the consumption of this good will change if:
i. The price of good X increases by 5 percent.
ii. The price of good Y increases by 10 percent.
iii. Advertising decreases by 2 percent.
iv. Income falls by 3 percent.
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