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Suppose the own price elasticity of demand for good X is -2, its income elasticity is 3, its advertising elasticity is 2, and the cross-price
Suppose the own price elasticity of demand for goodXis -2, its income elasticity is 3, its advertising elasticity is 2, and the cross-price elasticity of demand between it and goodYis -4. Determine how much the consumption of this good will change if:
The price of good X decreases by 6 percent.
The price of good Y increases by 8 percent
Advertising decreases by 4 percent
Income increases by 5 percent
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