Cross price elasticity of demand

Discussion in 'CT7' started by Rupel, Mar 9, 2017.

  1. Rupel

    Rupel Member

    Hey, it will be very helpful if someone could please explain the solution to the problem in the attachment. It is problem number 3. Kindly reply. Thanks. IMG_6244.JPG
     
  2. Charlie

    Charlie Member

    Hi,

    It's a direct application of the formula in the Course Notes (Module 3, page 7). You can fill in all the details for the denominator and for the elasticity itself and then solve for the appropriate bit in the numerator :)
     
  3. Rupel

    Rupel Member

    Thank you very much for your help.
     

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