MBA题Suppose the cross-price elasticity of demand between goods X and Y is 4.How much would the price of good Y have to change in order to change the consumption of good X by 20 percent?

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MBA题Suppose the cross-price elasticity of demand between goods X and Y is 4.How much would the price of good Y have to change in order to change the consumption of good X by 20 percent?
MBA题
Suppose the cross-price elasticity of demand between goods X and Y is 4.How much would the price of good Y have to change in order to change the consumption of good X by 20 percent?

MBA题Suppose the cross-price elasticity of demand between goods X and Y is 4.How much would the price of good Y have to change in order to change the consumption of good X by 20 percent?
CPEoD = (% Change in Quantity Demand for Good X)/(% Change in Price for Good Y)
therefore, 20% / % Change in Price for Good Y= 4
=5%

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