Suppose the own price elasticity of demand for good X is -3, its income elasticity...
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Finance
Suppose the own price elasticity of demand for good X is -3, its income elasticity is -2, its advertising elasticity is 4, and the cross-price elasticity of demand between it and good Y is -2. Determine how much the consumption of this good will change if: Instructions:
Enter your responses as percentages. Include a minus (-) sign for all negative answers.
a. The price of good X decreases by 7 percent.
b. The price of good Y increases by 10 percent.
c. Advertising decreases by 2 percent.
d. Income increases by 4 percent.
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