lolaizzy123
New member
If someone could please help me answer this AND explain why the answer is what it is, I would appreciate it tremendously. I can't seem to figure it out.
Background info and question:
The accompanying table lsits the cross-price elasticities of demand of several foods, where the percent price change is measured for the first good of the pair, and the percent quantity change is measured for the second good.
Good: Air-conditioning units and kilowatts of electricity
Cross-Price elasticity of demand: -0.34
Good: Coke and Pepsi
Cross-Price elasticity of demand: +0.63
Good: High-fuel-consuming sport-utility vehicles (SUVs) and gasoline
Cross-Price elasticity of demand: -0.28
Good: McDonald's burgers and Burger King burgers
Cross-Price elasticity of demand: +0.82
Good: Butter and margarine
Cross-Price elasticity of demand: +1.54
**Use the information in the table to calculate how a 5% increase in the price of Pepsi affects the quantity of Coke demanded.
**Use the information in the table to calculate how a 10% decrease in the price of gasoline affects the quantity of SUVs demanded.
Thank you so, so, SO much if you can help me!
Background info and question:
The accompanying table lsits the cross-price elasticities of demand of several foods, where the percent price change is measured for the first good of the pair, and the percent quantity change is measured for the second good.
Good: Air-conditioning units and kilowatts of electricity
Cross-Price elasticity of demand: -0.34
Good: Coke and Pepsi
Cross-Price elasticity of demand: +0.63
Good: High-fuel-consuming sport-utility vehicles (SUVs) and gasoline
Cross-Price elasticity of demand: -0.28
Good: McDonald's burgers and Burger King burgers
Cross-Price elasticity of demand: +0.82
Good: Butter and margarine
Cross-Price elasticity of demand: +1.54
**Use the information in the table to calculate how a 5% increase in the price of Pepsi affects the quantity of Coke demanded.
**Use the information in the table to calculate how a 10% decrease in the price of gasoline affects the quantity of SUVs demanded.
Thank you so, so, SO much if you can help me!