When the price of photocopiers increases by 13%, the associated change in printers demanded is 6%. You don't know if this is an increase or decrease in the quantity demanded of printers, but you know that photocopiers and printers are substitutes. Use that information to calculate the cross-price elasticity of demand for printers. Remember, for some elasticities, we take the absolute value. For others, we do not. Include a negative sign if needed.
When the price of photocopiers increases by 13%, the associated change in printers demanded is 6%. You don't know if this is an increase or decrease in the quantity demanded of printers, but you know that photocopiers and printers are substitutes. Use that information to calculate the cross-price elasticity of demand for printers. Remember, for some elasticities, we take the absolute value. For others, we do not. Include a negative sign if needed.
Chapter6: Elasticities
Section: Chapter Questions
Problem 1P
Related questions
Question
Stuck on this question for hours. Question in image. Thanks :)
![When the price of photocopiers increases by 13%, the associated change in printers
demanded is 6%. You don't know if this is an increase or decrease in the quantity demanded of
printers, but you know that photocopiers and printers are substitutes. Use that information to
calculate the cross-price elasticity of demand for printers.
Remember, for some elasticities, we take the absolute value. For others, we do not. Include a
negative sign if needed.
You Answered
Correct Answer
0.46 margin of error +/- 0.1
As the price of photocopiers increases, people buy more of the now relatively cheaper
printer as they are substitutes for the consumer. The price of photocopiers and quantity
%AQ
of printers move in the same direction so the cross-price elasticity is positive.e
%ΔΡ](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2c0b5836-a64c-481e-8356-7a78f1954caf%2Fdc78b3fe-d92e-4ac5-9013-09f3949e964a%2Fbdofww_processed.png&w=3840&q=75)
Transcribed Image Text:When the price of photocopiers increases by 13%, the associated change in printers
demanded is 6%. You don't know if this is an increase or decrease in the quantity demanded of
printers, but you know that photocopiers and printers are substitutes. Use that information to
calculate the cross-price elasticity of demand for printers.
Remember, for some elasticities, we take the absolute value. For others, we do not. Include a
negative sign if needed.
You Answered
Correct Answer
0.46 margin of error +/- 0.1
As the price of photocopiers increases, people buy more of the now relatively cheaper
printer as they are substitutes for the consumer. The price of photocopiers and quantity
%AQ
of printers move in the same direction so the cross-price elasticity is positive.e
%ΔΡ
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
![Exploring Economics](https://www.bartleby.com/isbn_cover_images/9781544336329/9781544336329_smallCoverImage.jpg)
Exploring Economics
Economics
ISBN:
9781544336329
Author:
Robert L. Sexton
Publisher:
SAGE Publications, Inc
![Managerial Economics: Applications, Strategies an…](https://www.bartleby.com/isbn_cover_images/9781305506381/9781305506381_smallCoverImage.gif)
Managerial Economics: Applications, Strategies an…
Economics
ISBN:
9781305506381
Author:
James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:
Cengage Learning
![Microeconomics](https://www.bartleby.com/isbn_cover_images/9781337617406/9781337617406_smallCoverImage.gif)
![Exploring Economics](https://www.bartleby.com/isbn_cover_images/9781544336329/9781544336329_smallCoverImage.jpg)
Exploring Economics
Economics
ISBN:
9781544336329
Author:
Robert L. Sexton
Publisher:
SAGE Publications, Inc
![Managerial Economics: Applications, Strategies an…](https://www.bartleby.com/isbn_cover_images/9781305506381/9781305506381_smallCoverImage.gif)
Managerial Economics: Applications, Strategies an…
Economics
ISBN:
9781305506381
Author:
James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:
Cengage Learning
![Microeconomics](https://www.bartleby.com/isbn_cover_images/9781337617406/9781337617406_smallCoverImage.gif)
![Economics (MindTap Course List)](https://www.bartleby.com/isbn_cover_images/9781337617383/9781337617383_smallCoverImage.gif)
Economics (MindTap Course List)
Economics
ISBN:
9781337617383
Author:
Roger A. Arnold
Publisher:
Cengage Learning
![Survey Of Economics](https://www.bartleby.com/isbn_cover_images/9781337111522/9781337111522_smallCoverImage.gif)
![Economics For Today](https://www.bartleby.com/isbn_cover_images/9781337613040/9781337613040_smallCoverImage.gif)