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ePack: Principles of Microeconomics 6th Edition by Gregory Mankiw
Edition 6ISBN: 978-1133150558ePack: Principles of Microeconomics 6th Edition by Gregory Mankiw
Edition 6ISBN: 978-1133150558 Exercise 7
You have the following information about good X and good Y:
• Income elasticity of demand for good X: ?3
• Cross-price elasticity of demand for good X with respect to the price of good Y: 2
Would an increase in income and a decrease in the price of good Y unambiguously decrease the demand for good X? Why or why not?
• Income elasticity of demand for good X: ?3
• Cross-price elasticity of demand for good X with respect to the price of good Y: 2
Would an increase in income and a decrease in the price of good Y unambiguously decrease the demand for good X? Why or why not?
Explanation
Verified
Verified
Income elasticity of good X is -3.
Incom...
ePack: Principles of Microeconomics 6th Edition by Gregory Mankiw
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