Suppose the own-price elasticity of demand for good X is -2, its income elasticity is 3, its advertising elasticity is 4, and the cross-price elasticity of demand between it and good Y is -6

Economics Dec 23, 2020

Suppose the own-price elasticity of demand for good X is -2, its income elasticity is 3, its advertising elasticity is 4, and the cross-price elasticity of demand between it and good Y is -6. Determine how much the consumption of this good will change if:

a. the price of good X decreases by 5%

b. the price of good Y increases by 10%.

c. advertising decreases by 2%.

d. income increases by 3%.

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