(Figure: VI) The price of good Y increased from $1.00 to $5.00.
a. Explain whether goods X and Y are complements or substitutes.
b. Calculate the cross-price elasticity of demand for good X with respect to good Y.
c. What happened to the demand curve for good X?

Question

(Figure: VI) The price of good Y increased from $1.00 to $5.00.  
a. Explain whether goods X and Y are complements or substitutes.
b. Calculate the cross-price elasticity of demand for good X with respect to good Y.
c. What happened to the demand curve for good X?

Quizplus · Accepted Answer

The Answer of (Figure: VI) The price of good Y increased from $1.00 to $5.00.  
a. Explain whether goods X and Y are complements or substitutes.
b. Calculate the cross-price elasticity of demand for good X with respect to good Y.
c. What happened to the demand curve for good X?

(Figure: VI) the Price of Good Y Increased from $1