Suppose the own price elasticity of demand for good X is -5, its income elasticity is -3, its advertising elasticity is 3, and the cross-price...
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# Suppose the own price elasticity of demand for good X is -5, its income elasticity is -3, its

advertising elasticity is 3, and the cross-price elasticity of demand between it and good Y is 5. Determine how much the consumption of this good will change if:

a. The price of good X decreases by 6 percent.

_____ percent

b. The price of good Y increases by 7 percent.

______ percent

c. Advertising decreases by 4 percent.

______ percent

d. Income increases by 2 percent.

______ percent

a. The price of good X decreases by 6 percent. _30____ percent (increase) b. The... View the full answer

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