suppose the crossprice elasticity of demand between goods is

suppose the cross-price elasticity of demand between goods is 1. how much would the price of good y have to change in order to change the consumption of good x by 20 percent

Solution

Percentage change in price of x/Percentage change in price of y = 1

20%/Percentage change in price of y = 1

Percentage change in price of y = 20%

suppose the cross-price elasticity of demand between goods is 1. how much would the price of good y have to change in order to change the consumption of good x

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