Answered

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The quantity demanded of Blu-ray players increased 9% when the price of DVDs increased 5%. What is the estimated cross-price elasticity of demand for Blu-ray players

Sagot :

Parrain

Answer: 1.8

Explanation:

The cross price elasticity shows the change in quantity demanded in a good as a result of the change in price of another good.

Formula is:

= Percentage change in quantity of good A / Percentage change of price of good B

= 9% / 5%

= 1.8

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