One recently the price of antique fumiture increased 10 perc

One recently, the price of antique fumiture increased 10 percent and the quantity demanded decreased by 30 with no change in the price winter percent, and refinishing products, the quantity of refinishing products demanded decreased by 8 percent. What is the cross elasticity of demand for refinishing products with respect to the price of antique fumiture? The cross e of demand for refinishing products with respect to the price of antique fumiture is L. Answer to 1 decimal place. Antique furniture and refinishing products are because OA substitutes; the cross elasticity of refinishing products with respect to the price ofantique furniture is negative OB. complements; the cross elasticity of refinishing products with respect to the price of antique furniture is positive OC, substitutes; the cross elasticity of refinishing products with respect to the price of antique fumiture is positive OD. complements; the price elasticity of demand for both goods is positive OE. complements; the cross elasticity of refinishing products with respect to the price of antique furniture is negative

Solution

Cross elasticity of demand = Percentage change in demand of refurnishing/change in price of antique furniture

-8/10 = -0.8

The Cross elasticity of demand with respect ot refurnishing furniture is -0.8

E Complements because cross elasticity of demand of refunishing goods with respect to price of antique furniture is negative.