Cross Elasticity of Demand of Widgets

Related BrainMass Solutions

• Cross Elasticity of Widgets

  $2.00 + $2.10)/2] = -$0.10/$2.05 = -0.0488 = 4.88% Cross elasticity of demand = -0.105/-0.0488 = 2.2 Since the cross elasticity of demand is positive that means the goods are substitute goods.

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  Provides solution to cross elasticity of demand question.

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• Production Economics of Widgets

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