Answer in Microeconomics for stephanie tarabay #110785
a).
“-3u00d77=21”
A negative price Elasticity means that their is an inverse realationship betwen the price change and quantity demanded and therefore,Price decrease by 7% will increase the quanity demanded by 21%
b).
“8u00d7-5=40”
Price increase by of y 8% will decrease the quanity demanded by 40 percent because good x and y are complementary goods. They are complementary goods because their cross elasticity is negative
c).
“4u00d73=12”
A positive price elasticity means that
there is positive realationship betwen the quantity demanded and price charged.Advertising decrease by 12%
d).
“-2u00d73=-6”
Increasing income by 3% decreases the quantity demanded by 6%