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Homework answers / question archive / Suppose the own price elasticity of demand for good x is -2, its income elasticity is 3, its advertising elasticity is 2, and the cross-price elasticity of demand between it and good y is -4

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

Economics

Suppose the own price elasticity of demand for good x is -2, its income elasticity is 3, 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 goo will change if:

A. The price of good x decreases by 6 percent?

B. The price of good y increases by 8?

C. Advertising decreases b 4 percent?

D. Income increases by 5 percent?

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