Question

The cross-price elasticity of demand for Good B with respect to good A
is 0.65. 1000kg of Good B is demanded when the cost of good A is $60
per kg. The cost of Good A rises to $100. Calculate the corresponding inthe quantity demanded of Good B.​

Answer 1

Explanation:

The cross-price elasticity of demand for Good B with respect to good A

is 0.65. 1000kg of Good B is demanded when the cost of good A is $60

per kg. The cost of Good A rises to $100. Calculate the corresponding inthe quantity demanded of Good B.