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Suppose the own price elasticity of demand for good X is -5, its income elasticity is -1, its advertising elasticity is 4, and the cross-price elasticity of demand between it and good Y is 3

Economics

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Suppose the own price elasticity of demand for good X is -5, its income elasticity is -1, its advertising elasticity is 4, and the cross-price elasticity of demand between it and good Y is 3. Determine how much the consumption of this good will change if:

 

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

 

a. The price of good X decreases by 6 percent.

 

 percent

 

b. The price of good Y increases by 7 percent.

 

  percent

 

c. Advertising decreases by 2 percent.

 

  percent

 

d. Income increases by 3 percent.

 percent