When the price of a cell phone increases by 5 percent, the quantity of cell phone calls demanded decreases by 3 percent. calcul

Question

3 years ago

7

ate the cross elasticity of demand for cell phone calls with respect to the price of a cell phone?

1 answer:

Ratling [72] · Answer 1 · 2022-06-02T10:22:23+03:00

7 0

To calculate the cross elasticity of demand you divide the percent change in quantity by the percent change in price.

5/3 = 1.666

When the price of a cell phone increases by 5 ​percent, the quantity of cell phone calls demanded decreases by 3 percent. calcul