Question
The price of apples rises from $1.00 per pound to $1.50 per pound. As a result, the quantity of oranges demanded rises from 8,000 per
The price of apples rises from $1.00 per pound to $1.50 per pound. As a result, the quantity of oranges demanded rises from 8,000 per week to $9,500 per week.
What is the % change of quantity of oranges demanded?
What is the % change in the price of apples?
Compute the cross-price elasticity.
Is the cross-price elasticity positive or negative?
Are the two goods substitutes?
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Analyzing the Price Change and Demand Effects 1 Percentage Change in Quantity of Oranges Demanded In...
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Intermediate Microeconomics
Authors: Hal R. Varian
9th edition
978-0393123975, 393123979, 393123960, 978-0393919677, 393919676, 978-0393123968
