$$\begin{array} { l r r r r r r }
\text { Month } & \mathbf { P X } _ { \mathbf { X } } & \mathbf { Q X } & \mathbf { P } _ { \mathbf { Y } } & \mathbf { Q } & \mathbf { P } _ { \mathbf { Z } } & \mathbf { \text { QZ } } \
\hline \text { Jan } & \$ 10 & 100 & \$ 20 & 50 & \$ 25 & 200 \
\text { Feb } & 10 & 90 & 18 & 60 & 25 & 225 \
\text { Mar } & 10 & 70 & 15 & 90 & 25 & 275 \
\text { Apr } & 12 & 50 & 15 & 100 & 25 & 290 \
\text { May } & 15 & 25 & 15 & 120 & 25 & 320\\hline
\end{array}$$
-In the above table,the cross price elasticity of demand (using averages)for Z with good X,when PX increases from $12 to $15,is approximately equal to
A)+1.03
B)+2.26.
C)+0.44.
D)-0.44.

Question

$$\begin{array} { l r r r r r r } 
\text { Month } & \mathbf { P X } _ { \mathbf { X } } & \mathbf { Q X } & \mathbf { P } _ { \mathbf { Y } } & \mathbf { Q } & \mathbf { P } _ { \mathbf { Z } } & \mathbf { \text { QZ } } \
\hline \text { Jan } & \$ 10 & 100 & \$ 20 & 50 & \$ 25 & 200 \
\text { Feb } & 10 & 90 & 18 & 60 & 25 & 225 \
\text { Mar } & 10 & 70 & 15 & 90 & 25 & 275 \
\text { Apr } & 12 & 50 & 15 & 100 & 25 & 290 \
\text { May } & 15 & 25 & 15 & 120 & 25 & 320\\hline
\end{array}$$
-In the above table,the cross price elasticity of demand (using averages)for Z with good X,when PX increases from $12 to $15,is approximately equal to
A)+1.03
B)+2.26.
C)+0.44.
D)-0.44.

Quizplus · Accepted Answer

The cross price elasticity of demand is calculated as the percentage change in quantity demanded of Z divided by the percentage change in price of X. The average price of X changes from $12 to $15, and the quantity of Z changes from 290 to 320. The calculation gives approximately +0.44.

-In the Above Table,the Cross Price Elasticity of Demand (Using