cross-PRICE ELASTICITY

label Economics
account_circle Unassigned
schedule 1 Day
account_balance_wallet $5

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

Thank you for the opportunity to help you with your question!

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.


Please let me know if you need any clarification. I'm always happy to answer your questions.
Jul 25th, 2015

Did you know? You can earn $20 for every friend you invite to Studypool!
Click here to
Refer a Friend
...
Jul 25th, 2015
...
Jul 25th, 2015
Oct 20th, 2017
check_circle
Mark as Final Answer
check_circle
Unmark as Final Answer
check_circle
Final Answer

Secure Information

Content will be erased after question is completed.

check_circle
Final Answer