Question
For each scenario, calculate the cross-price elasticity between the two goods and identify how the goods are related. Please use the midpoint method when applicable,
For each scenario, calculate the cross-price elasticity between the two goods and identify how the goods are related. Please use the midpoint method when applicable, and specify answers to one decimal place.
A 20%20% price increase for Product A causes a 10%10% decrease in its quantity demanded, but no change in the quantity demanded for Product B.
cross-price elasticity between A and B:
relationship between A and B:
Product C increases in price from $3$3 a pound to $4$4 a pound. This causes the quantity demanded for Product D to increase from 4444 units to 8585 units.
cross-price elasticity between C and D:
relationship between C and D:
When the price of Product E decreases 9%9%, this causes its quantity demanded to increase by 14%14% and the quantity demanded for Product F to increase 12%12%.
cross-price elasticity between E and F:
relationship between E and F:
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