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Unformatted text preview: increase in the quantity demanded of good Z at a constant P Z ? b) Is good Z a normal good or inferior good ? 3) a) What is the cross-price elasticity of demand for good X if a 10% decrease in price of good Y, (P Y ↓) causes a 5% increase in the quantity demanded of good X (Q X ↑) at a constant price of X, P X ? b) Are goods X and Y substitutes or complements ? Quantity of X Price per unit of X Demand 70 90 80 120 A B C D Demand- new 100...
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This note was uploaded on 03/11/2008 for the course EC 201 taught by Professor Brown during the Winter '07 term at Cal Poly Pomona.
- Winter '07
- Price Elasticity