Question
The price of good X has risen by 10%. The sales of good Y have fallen from 12,000/month to about 10,000. What is the cross
The price of good X has risen by 10%. The sales of good Y have fallen from 12,000/month to about 10,000.
- What is the cross elasticity of demand for Y with respect to the price of X?
- Are X and Y substitutes or complements?
The price of good G has fallen; in response to the change in price of G, consumption of good H has increased even though the price of good H has remained unchanged. What can be said about the substitution and income effects of goods G and H?
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Microeconomics
Authors: David Besanko, Ronald Braeutigam
5th edition
1118572270, 978-1118799062, 1118799062, 978-1118572276
