6. You have the following information for your product
a. The price elasticity of demand is -0.9
b. the income elasticity of demand is 0.5
c. the cross-price elasticity of demand between your good and a related good is 2.0
What can you determine about consumer demand for your product from this information?© BrainMass Inc. brainmass.com March 22, 2019, 2:41 am ad1c9bdddf
The price elasticity of demand is -0.9. Negative sign indicates that price and quantity demanded have inverse relationship (Keeping the other factors unchanged). If the price of product increases by 1%, quantity demanded will decrease by ...
Solution predicts the behavior of demand with the help of information provided.