Scenario 5-2
Suppose the demand function for good X is given by: where is the quantity demanded of good X, is the price of good X,and is the price of good Y,which is related to good X.
-Refer to Scenario 5-2.Using the midpoint method,if the price of good X is constant at $10 and the price of good Y decreases from $10 to $8,the cross price elasticity of demand is about
A)0.57,and X and Y are substitutes.
B)-0.22,and X and Y are complements.
C)-0.80,and X and Y are complements.
D)-2.57,and X and Y are complements.

Question

Scenario 5-2
Suppose the demand function for good X is given by:  where  is the quantity demanded of good X,  is the price of good X,and  is the price of good Y,which is related to good X.
-Refer to Scenario 5-2.Using the midpoint method,if the price of good X is constant at $10 and the price of good Y decreases from $10 to $8,the cross price elasticity of demand is about
A)0.57,and X and Y are substitutes. 
B)-0.22,and X and Y are complements. 
C)-0.80,and X and Y are complements. 
D)-2.57,and X and Y are complements.

Quizplus · Accepted Answer

The Answer of Scenario 5-2
Suppose the demand function for good X is given by:  where  is the quantity demanded of good X,  is the price of good X,and  is the price of good Y,which is related to good X.
-Refer to Scenario 5-2.Using the midpoint method,if the price of good X is constant at $10 and the price of good Y decreases from $10 to $8,the cross price elasticity of demand is about
A)0.57,and X and Y are substitutes. 
B)-0.22,and X and Y are complements. 
C)-0.80,and X and Y are complements. 
D)-2.57,and X and Y are complements.

Scenario 5-2 Suppose the Demand Function for Good X Is Given By