Absolute value of the price elasticity of demand of product

Assignment Help Business Economics

Reference no: EM13885655

Suppose that the price of product A decreases from $27 to $14 and, as a result, the quantity traded of A increases from 175 to 210, the quantity traded of B increases from 65 to 100 and the quantity traded of product C falls from 505 to 400.

1) What is the absolute value of the price elasticity of demand of product A?

2) What is the cross-price elasticity of demand for good B with respect to the price of good A?

3) What is the cross-price elasticity of demand for good C with respect to the price of good A?

Reference no: EM13885655

Questions Cloud

The traveling salesman problem is a somewhat misleading : The traveling salesman problem (TSP) is a somewhat misleading title as it does not always relate to a salesman.

What are the basic steps of content analysis : What are the types of research design where content analysis is used, How is content analysis carried out manually and What are the basic steps of content analysis?

Return of the bio filtration system and the membrane system : The capital cost of the membrane treatment system is $500,000 with operating costs at $100,000 occuring biannually with additional $25,000 per year for contract services. Draw cash flow diagram for each system demonstrating the first 10 years of use...

Write a brief summary of the given article : You will do a web search and find an article about "Today's Diversity in the Workplace". Please write a brief summary of the article

Absolute value of the price elasticity of demand of product : Suppose that the price of product A decreases from $27 to $14 and, as a result, the quantity traded of A increases from 175 to 210, the quantity traded of B increases from 65 to 100 and the quantity traded of product C falls from 505 to 400. What is ..

What factors do you think would influence your team : As a leader, what factors do you think would influence your team's attitudes and job satisfaction? Which factor would be most important. Why

Generally pay the higher interest rate : For which two bonds would you expect to generally pay the higher interest rate, a U.S. government bond or a municipal bond with the same term and issued by a creditworthy municipality and explain why?

Should the franchisor be held liable for the injuries : If the van is involved in an accident that causes injury to a person, should the franchisor be held liable for the injuries? What are the arguments for and against holding the franchisor liable under the circumstances

What total utility will you realize : You are choosing between two goods, X and Y, and your marginal utility from each is as shown below. If your income is $9.00 and the prices of X and Y are $2.00 and $1.00, respectively, what quantities of each will you purchase to maximize utility? Wh..

User Account

All Pages