# Answer to Question #70633 in Microeconomics for nouga

Question #70633
Cross-price elasticity refers to? The formula for cross-price elasticity is? Suppose computer prices at an office supply store fall from \$1,000 to \$900 and as a result the quantity demanded of typewriters decreases from 40 to 20 per month. The cross-price elasticity of demand is closest to? Assume apples and oranges are substitutes. Suppose apple growers launch a successful advertising campaign that convinces consumers apples are a better product. As a result the cross-price elasticity of apples and oranges will become? Suppose the price of video games falls from \$40 to \$20 and as a result the quantity demanded of scooters falls from 40,000 to 10,000 per year. The value of the cross-price elasticity of demand is? i need answers with explanations
a) Cross price elasticity of demand refers to the percentage change in the
quantity demanded of a given product due to the percentage change in
the price of another &quot;related&quot; product.
b) The formula for cross-price elasticity is E c = ((P A 1 +P A 2 )/(Q 1 B +Q 2 B ))*((Q 2 B -Q 1 B )/ /(P A 2 -
P A 1 )).
c) E c = ((\$1000+\$900)/(40+20))*((20-40)/(\$900- \$1000))= 6,33
d) With a well-run advertising company, the sales of apples have skyrocketed, and
the number of oranges sold will decrease, so cross-elasticity will decrease.
e) E c = ((\$40+\$20)/(40000+10000))*((10000-40000)/(\$20- \$40)) = 1,8.

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!