Suppose the own-price elasticity of demand for good X is -4, its income elasticity is 2, its advertising elasticity is 3, and the cross-price elasticity of demand between good X and good Y is -3

Economics Dec 13, 2020

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

A. the price of good X increases by 5%;

B. the price of good Y increases by 8%;

C. advertising decreases by 4%;

D. income falls by 3%.

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