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Ksenya-84 [330]
3 years ago
12

if the cross price elasticity between goods b and a is -2 and the price of good b increases by 5 percent the quantity demanded o

f good a will
Business
1 answer:
nadezda [96]3 years ago
8 0

Answer:

lead to a fall in quantity demanded by 10%

Explanation:

The cross price elasticity of demand measures the effect of the percentage in price of one good on the quantity demanded of another good.

Cross price elasticity = percentage change in quantity demanded of good A / percentage change in price of good B

2 = percentage change in quantity demanded of good A / 5%

percentage change in quantity demanded of good A = 10%

Because demand is elastic, the quantity demanded would fall by 10%

Elastic demand means that quantity demanded is sensitive to price changes. A small change in price would lead to a greater change in quantity demanded

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8 0
3 years ago
Read 2 more answers
A firm underwriting of a municipal bond issue usually has a number of different broker-dealers involved. Those who earn the tota
Ymorist [56]

Answer:

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Answer:

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If a customer at a Target store brings a purchase to checkout, and the item is not priced, the clerk at the register can ask the
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