Answer to Question #189071 in Microeconomics for Baker Abdulmujeeb

Question #189071

If the percentage change in the quantity demanded of a commodity A is 50% and the percentage change in the price of commodity B is 33.33% determine the coefficient of elasticity and what type of commodities are comodity A and B


1
Expert's answer
2021-05-04T12:18:30-0400

If the percentage change in the quantity demanded of a commodity A is 50% and the percentage change in the price of commodity B is 33.33%, then the coefficient of elasticity is:

Ed = 0.5/0.3333 = 1.5, so commodities A and B are substitutes.


Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Comments

No comments. Be the first!

Leave a comment

Ask Your question

LATEST TUTORIALS
New on Blog
APPROVED BY CLIENTS