cross-PRICE ELASTICITY

Economics
Tutor: None Selected Time limit: 1 Day

The cross-price elasticity of starships and spaceships is 0.66, where the percentage change in quantity is for starships and the percentage change in price is measured for spaceships. Calculate the percentage that the quantity demanded of starships will change if the price of spaceships increases by 7.0%. Enter your response to one decimal place, and enter a negative number if the quantity demanded decreases.

Jul 25th, 2015

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E_{A,B} = \frac { \% Change\; in\; Quantity\; Demanded\; for\; Good\; A }{ \%\; Change\; in\; Price\; of\; Good\; B }
=

starship:spaceship=66:100

x:107

107*66/100

70.62 it has increased.


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Jul 25th, 2015

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