Question

What kind of structural transmission is highly visible in india during recent decades?
A. High inflation
B. High urbanization
C. Low industrial growth
D. Low contribution by service sector ​

Answer 1

Explanation:

Question:

The price of peanut butter increases from $3.00 to $3.50 per jar, and the quantity of jelly demanded falls from 30 jars to 24 jars. Calculate the cross-price elasticity of demand.

Importance of Cross-Price Elasticity of Demand:

The Cross-Price Elasticity of Demand (XED) is an important tool that can be used by firms to track the relationship between two goods and establish the correct pricing strategy. This tool can help to avoid a wrong pricing strategy that can generate monetary losses.