Suppose the own price elasticity of demand for good

Assignment Help Business Economics

Reference no: EM13996080

Suppose the own price elasticity of demand for good X is -3, its income elasticity is 1, its advertising elasticity is 2, and the cross-price elasticity of demand between it and good Y is -4. Determine how much the consumption of this good will change if:

Instructions: Enter your answers as percentages. Include a minus (-) sign for all negative answers.

a. The price of good X decreases by 5 percent.

b. The price of good Y increases by 8 percent

c. Advertising decreases by 4 percent.

d. Income increases by 4 percent

Reference no: EM13996080

Questions Cloud

What is the difference between ortho : What is the difference between ortho, para and meta in organic chemistry?

Should the government always balance its budget : Should the government always balance its budget? If you think it should, what steps do you suggest that it should take to balance its budget? What is the relationship between budget deficits and national (public) debt? Why has the USA national debt b..

Argument in favor of economic stabilization during recession : Explain the main arguments in favor of economic stabilization during recessions. Explain why policy lags could make stabilization policies counterproductive. What are the justifications given in favor of more government involvement in the market econ..

Indicate how the scenario will affect net income : Prepare appropriate entry(s) at December 31, 2011, 2012, and 2013, and for each year indicate how the scenario will affect net income, OCI, and comprehensive income.

Suppose the own price elasticity of demand for good : Suppose the own price elasticity of demand for good X is -3, its income elasticity is 1, its advertising elasticity is 2, and the cross-price elasticity of demand between it and good Y is -4. Determine how much the consumption of this good will chang..

Stimulus package to boost the aggregate demand : The economy slips into a recession and the government is thinking of providing a stimulus package to boost the aggregate demand. Which of the following is most likely to increase the aggregate demand, all else the same? Increase taxes Reduce transfer..

Working on some organic chemistry lab : Working on some organic chemistry lab questions. We are using acetic acid and an unknown alcohol to complete a Fischer Esterification. We are instructed to reflux the reagents for an hour to push the reaction forward. My question is this " You are in..

Create a claim using the proven technique : Create a claim using the proven technique below to get venture capital money for a new product idea. Use your own new product idea or pick an innovative product that is already on the market and act like it’s a new idea for which you are trying to ge..

Is employer-based insurance unraveling : Medical costs are once again rising rapidly, forcing health care back into political prominence. This issue direct affects you as a student, family member, employer, and/or employee. The problem of medical costs is so pervasive that it underlies thre..

User Account

All Pages