Using table (below), determine by how much the demand for Florida Indian River oranges would change as a result of a 10 percent increase in the price of Florida interior oranges, and vice versa.
Type of Orange Fl Indian River Florida Interior California
FL Indian River -3.07 +1.56 +0.01
Florida Interior +1.16 -3.01 +0.14
California +0.18 +0.09 -2.76
Let X denotes Florida Indian River orange
Let Y denotes Florida interior oranges
Percent change in prices of Y=+10% (+ve sign indicates an increase)
Cross price elasticity of X=percent change in demand ...
The solution analyzes the effect of price change on the quantity demanded with the help of elasticity values given.