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Suppose the own price elasticity of demand for good X is -3, its income elasticity is -2, its advertising elasticity is 4, and the cross-price
Suppose the own price elasticity of demand for goodXis -3, its income elasticity is -2, its advertising elasticity is 4, and the cross-price elasticity of demand between it and goodYis -2. Determine how much the consumption of this good will change if:
a. The price of goodXdecreases by 7 percent.
The price of goodYincreases by 10 percent.
c. Advertising decreases by 2 percent.
d. Income increases by 4 percent.
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