1
answer
0
watching
134
views
30 Mar 2020
Suppose that the price of Product A falls from $20 to $15. In response, the quantity demanded of A increases from 100 to 120 units. The quantity demanded for Product B increases from 200 to 300.
1. Calculate the arc cross-elasticity between Product B and Product A.
2. Is B a substitute or complement for A? Explain.
3. Does Product A follow the "law of demand"? Explain.
Suppose that the price of Product A falls from $20 to $15. In response, the quantity demanded of A increases from 100 to 120 units. The quantity demanded for Product B increases from 200 to 300.
1. Calculate the arc cross-elasticity between Product B and Product A.
2. Is B a substitute or complement for A? Explain.
3. Does Product A follow the "law of demand"? Explain.
Read by 2 people
2 Jun 2021