Computing quantity demanded by cross-product elasticity

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Reference no: EM1315642

Cross price elasticity of demand

Products	Cross - Product elasticity
Ground beef with price of poultry	024
Electricity with price of natural gas	0.20
Entertainment with price of food	-0.72

Use the above data to answer the following questions:

1. If the price of entertainment increases by 2 percent, what will happen to the quantity of food demanded? Please be specific

2. If the price of electricity falls by 3 percent, what will happen to the quantity of natural gas demanded?

3. If a shift in tastes increases the demand for poultry and drives up its price by 5 percent, what will happen to the quantity of ground beef demanded?

Reference no: EM1315642

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