Respuesta :
Suppose that when the price of good x changes from $5 to $10, the
demand for good y changes from 110 to 100, then the cross-elasticity of
demand is: -0.14 and the goods are complements.
What is the price elasticity?
- Price elasticity of demand measures how much a product's consumption changes in response to price changes. Mathematically, it is as follows:
- Price Demand Elasticity is calculated as follows:
Demand Elasticity = Demand Elasticity Price Elasticity
- Price elasticity is a tool used by economists to analyze how supply and demand for a product change in response to price changes.
- Supply has an elasticity, or price elasticity of supply, just like a demand.
- Price elasticity of supply is the correlation between a price change and a supply change.
- It is calculated by subtracting the percentage change in price from the percentage change in quantity supplied.
- The two elasticities work together to determine what products are produced and at what costs.
To learn more about elasticity, refer
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