A fall in the price of X from $6 to $4 results in an increase in the quantity of Y demanded (at the current price of Y)from 900 to 1,100 units. What is the cross elasticity of demand between X and Y?
A)0.5
B)-0.5
C)2
D)-2
E)Either A or B, depending on whether X and Y are substitutes or complements.

Question

Quizplus · Accepted Answer

The Answer of A fall in the price of X from $6 to $4 results in an increase in the quantity of Y demanded (at the current price of Y)from 900 to 1,100 units. What is the cross elasticity of demand between X and Y?
A)0.5
B)-0.5
C)2
D)-2
E)Either A or B, depending on whether X and Y are substitutes or complements.

A Fall in the Price of X from $6 to $4