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If the cross-price elasticity of demand between iPhones and iPads is -2.3, Instructions: Enter your response as a percentage rounded to one decimal...

If the cross-price elasticity of demand between iPhones and iPads is -2.3,

 

Instructions: Enter your response as a percentage rounded to one decimal place. If you are entering a negative number be sure to include a negative sign (-) in front of that number.

 

a. Are these complementary or substitute goods?

  • Substitutes
  • Complements


b. If the price of iPhones increases by 18 percent, by how much will the demand for iPads change?

Top Answer

a. The cross-price elasticity of demand between... View the full answer

1 comment
  • Thank you so much for your help. Your explanation helped me understand. I learned a lot from you!
    • isabelrutledge
    • Sep 04, 2018 at 12:21pm

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Other Answers

These are substitute goods. The cross elasticity is -2.3, which is greater than 1 (i.e the... View the full answer

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