A 2 percent increase in the price of milk causes a 4 percent reduction in the quantity demanded of chocolate syrup. what is the

Question

Vanyuwa [196]

4 years ago

11

A 2 percent increase in the price of milk causes a 4 percent reduction in the quantity demanded of chocolate syrup. what is the

cross-price elasticity of demand for chocolate syrup with respect to the price of milk?

Mathematics

1 answer:

yanalaym [24] · Answer 1 · 2021-11-26T19:21:11+03:00

yanalaym [24]4 years ago

8 0

The cross-price of elasticity of demand for chocolate syrup with respect to the price of milk would be :

e = % ΔQ chocolate syrup / %ΔP of milk

e = -4% / 2%

e = -2 %