Good Y has a cross elasticity of demand with respect to Good X calculated using the average method of –1. Initially 100 units of Good Y are demanded when Good X costs 20 pence. A rise in the price of Good X to 25 pence will result in a new level of demand for Good Y of:
A 125 units. B 95 units. C 80 units. D 70 units.
May i know how should this be calculated?
A 125 units. B 95 units. C 80 units. D 70 units.
May i know how should this be calculated?