KIC000073 - l4 1. mm.“ Student “ Instructor kolthoom...

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Unformatted text preview: / l4. 1...»... mm...“ Student: “ Instructor: kolthoom alkofahi Assignment: Hw Ch6-3 mate; 10:21:09 i Time: 12:24 PIVI Come: Eco 2301-05 E Book: HubbardfO'Brien: Microeconomics i 23 i Cross - price elasticity ofdcmand measures 7:". the rate at which firms can adjust the price of their goods when competitors adjust the price of their goods. the percentage change in the price of a good due to a change in the quantity demanded of a related good. ., the percentage change in the quantity demanded oi‘a good due to a change in the price of a related good. the responsiveness of quantity supplied to changes in quantity demanded. Some observers have been predicting for years that the printed book will be replaced with the electronic book. What does this imply about the cross - price elasticity between printed books and electronic books? A? It is zero. '1 It is positive. It is negative. It is not possible to determine this without more information. Suppose Tinsel Town Videos lowers the price of its movie club membership by 10 percent and as a result. CineArts Videos experienced a 16 percent deciinc in its movie club membership. What is the value of the cross - price elasticity between the two movie club memberships? V . - 1.6 0.625 - 0.625 L6 Page 5 My ' ’ ’ __ . _,_; _’ '_ ’_ ‘3227—r.____““_:‘_’—.""’_‘_"_L:I:I: 77 7 7 7 7 7 """ " ...
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