(Enter your response rounded to If a 10 percent increase in the price of tennis rackets decreases the quantity demanded...

Question

Question

(Enter your response rounded to If a 10 percent increase in the price of tennis rackets decreases the quantity demanded of te

Answer 1

Answer #1

Cross price elasticity of demand = % change in quantity of good X / % change in the price of good Y.

= -15 / 10

= -1.5

As the value is in negative these two goods in the market are considered as complements i.e. they both will be used together.

Answer 2

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