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If the Cross-Price Elasticity of Demand for a Good Is

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Essay

If the cross-price elasticity of demand for a good is estimated to be −3.9,estimate the percentage change in the quantity demanded of the good when the price of the related good increases from $30 per unit to $75 per unit.Also,if it is known that the income elasticity of demand for the same good is 2.5,estimate the percentage change in the quantity demanded of the good when consumer income increases from $100 to $300.


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