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26 September, 00:20

If a 30 % 30% price increase for Product A causes a 10 % 10% decrease in its quantity demanded, but no change in the quantity demanded for Product B, what is the cross-price elasticity of these goods? Round your answer to one decimal pl

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  1. 26 September, 03:27
    0
    0.0

    Explanation:

    The calculation of cross-price elasticity is given below:-

    cross-price elasticity

    = change in quantity demand in product B : Change price in product A

    = 0% : 30%

    = 0.0

    Therefore, the quantity demanded does not change in product B because a change in price of product A, so there is no relationship between A and B. Cross price elasticity of demand deals with the change in quantity demand in product B with respect to change in price A.
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