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Suppose the own price elasticity of demand for good X is 4, its income elasticity is 2, its advertising elasticity is 3, and the cross-price
Suppose the own price elasticity of demand for goodXis 4, its income elasticity is 2, its advertising elasticity is 3, and the cross-price elasticity of demand between it and goodYis 2. Determine how much the consumption of this good will change if:
Instructions:Enter your responses as percentages. If you are entering a negative number, be sure to use a () sign.
a. The price of goodXdecreases by 4 percent.
b. The price of goodYincreases by 9 percent.
c. Advertising decreases by 3 percent.
d. Income increases by 2 percent.
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