The crossprice elasticity of bows and violins is 034 where t

The cross-price elasticity of bows and violins is -0.34, where the percentage change in quantity is for bows and the percentage change in price is measured for violins. Calculate the percentage that the quantity demanded of bows will change if the price of violins decreases by 13%. Enter your response to one decimal place, and enter a negative number if the quantity demanded decreases.

Solution

the demand for bows is increased by= 0.66*13= 8.58%

it is calculated by= 1-0.34= 0.66 is the positive demand for bows