Purchase Solution

Effect of Price Changes on Quantity Demanded

Not what you're looking for?

Ask Custom Question

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

Purchase this Solution

Solution Summary

The solution analyzes the effect of price change on the quantity demanded with the help of elasticity values given.

Solution Preview

Let X denotes Florida Indian River orange
Let Y denotes Florida interior oranges

Case 1:
Percent change in prices of Y=+10% (+ve sign indicates an increase)
Cross price elasticity of X=percent change in demand ...

Solution provided by:
  • BEng (Hons) , Birla Institute of Technology and Science, India
  • MSc (Hons) , Birla Institute of Technology and Science, India
Recent Feedback
  • "Thank you"
  • "Really great step by step solution"
  • "I had tried another service before Brain Mass and they pale in comparison. This was perfect."
  • "Thanks Again! This is totally a great service!"
  • "Thank you so much for your help!"
Purchase this Solution

Free BrainMass Quizzes
Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.