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alexandr1967 [171]
3 years ago
13

Following a decrease in the supply of oranges, the price of orange juice increased by 20 percent, which resulted in a 10 percent

increase in the quantity of apple juice consumed. This implies that the cross elasticity of demand between orange juice and apple juice is
Business
1 answer:
s344n2d4d5 [400]3 years ago
4 0

Answer: This implies that the cross elasticity of demand between orange juice and apple juice is <u>0.5.</u>

Explanation:

The cross elasticity of demand is evaluated as:

\frac{\text{Percentage change in quantity of demand of Good X}}{\text{Percentage change in price of Good Y}}

Price of orange juice increased by 20 percent, which resulted in a 10 percent increase in the quantity of apple juice consumed.

The cross elasticity of demand =\frac{10}{20}

The cross elasticity of demand = 0.5

Hence, This implies that the cross elasticity of demand between orange juice and apple juice is <u>0.5.</u>

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Answer:

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Answer:

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=> P = C + PV(x) - S = 6 + 47.09 - 51 = $2.09.

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