Suppose you are a Market analyst studying the market of fruits in Nigeria. According to your...
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Suppose you are a Market analyst studying the market of fruits in Nigeria. According to your analysis, you realized that most consumed fruits are pineapples and bananas. You want to study how these two products are economically related. Thus you gather the following data on bananas and pineapples in the Nigerian market for the past year (see the table below). Exceptionally this year, there was an increase in the price of pineapples. Fruit Price per Kg, last year Price per Kg, this year Banana Pineapple 3.00 3.50 Quantity consumed, last year 10000 Quantity consumed, this year 10500 Questions: 1. Compute the Cross Price Elasticity of Demand for Bananas. 2. Based on the answer in #1, are bananas considered substitutes or complements? Explain in a maximum of two sentences. FYI: Cross price elasticity = (% change in demand of product A) / (% change of price of product B) Suppose you are a Market analyst studying the market of fruits in Nigeria. According to your analysis, you realized that most consumed fruits are pineapples and bananas. You want to study how these two products are economically related. Thus you gather the following data on bananas and pineapples in the Nigerian market for the past year (see the table below). Exceptionally this year, there was an increase in the price of pineapples. Fruit Price per Kg, last year Price per Kg, this year Banana Pineapple 3.00 3.50 Quantity consumed, last year 10000 Quantity consumed, this year 10500 Questions: 1. Compute the Cross Price Elasticity of Demand for Bananas. 2. Based on the answer in #1, are bananas considered substitutes or complements? Explain in a maximum of two sentences. FYI: Cross price elasticity = (% change in demand of product A) / (% change of price of product B)
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Systems Analysis and Design
ISBN: 978-1285171340
10th edition
Authors: Shelly Cashman, Harry J. Rosenblatt
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