Question

nment Score: 0% Hint Check Ans on 2 of 25 The cross-price elasticity of Sassy Cola and Crinkly Cola is 0.6, where the percentage change in quantity is for Sassy Cola and the percentage change in price is measured for Crinkly Cola. If the price of Crinkly Cola increases by 7.0%, what will the percentage change in the quantity demanded of Sassy Cola (%AQ) be? Enter the response to one decimal place and enter a negative number if the quantity demanded decreases. %AQP for Sassy Cola: % The cross-price elasticity of hamsters and hamster food is -0.3, where the percentage change in quantity is for hamsters and the percentage change in price is measured for hamster food. Calculate the percentage that the quantity demanded of hamsters will change if the price of hamster food decreases by 11%. Enter the response one decimal place and enter a negative number if the quantity demanded decreases. SAQP for hamsters: % about privacy pocy Terms of use con hele 00 15

Answer 1

SOM :- Cross price elasticity = 0.6, which is positive there fore sassy Cola and a crinkly cola are substi- tute goods. Now, %AQP = 0.6 % AP =) 9.40D 7.0% 7% %40 = 4.217 cola = 4.2% Hence % AQ? face Sassy The Quantity demanded has increas ed by 4.2% because sassy cola and Crinkly cola are substitute goods, an increase in price of will lead to also increase in the quantity demanded for another and vice-versa, one ,

-0.3 ☺ Solha cross price elasticity which is negative, there fore hamst ers and hamster food are comple- mentary goods. Now, %20P E-0-3. % Ap %AQ" - -0.3 [:"/ap= 11.12 -: ./4Q--3-3 Hence % -4 Q for hamsters = 3.3% - The Quam loty demand has fuere.aced by 3.3% because because hamsters and hamster food are compleme. mentary goods, an increase in price of one will bead to deer- lease in quantity demanded for another and vice versa.