Cross price-elasticity, Income elasticity
A. Calculate the cross-price elasticity of demand coefficient of a firm's product X, given that a 5% increase in the price of its close substitute, product Y, causes the quantity demand of product X to increase by 10%.
B.Calculate the income-elasticity of demand coefficient for a product for which a 4% increase in consumers' income will increase the quantity demanded by 6%.
© BrainMass Inc. brainmass.com October 10, 2019, 2:16 am ad1c9bdddfhttps://brainmass.com/economics/elasticity/cross-price-elasticity-income-elasticity-369970
Solution Summary
This solution shows the steps for calculating cross-price elasticity and income elasticity.
$2.19