Asked by
Hannah Molisani
on Dec 08, 2024
Verified
If the quantity of pineapples demanded increases by 4% when the price of papayas increases by 16%, the cross-price elasticity of demand between pineapples and papayas is
A) -4.
B) 0.25.
C) 4.
D) 64.
Cross-price Elasticity
An indicator showing the responsiveness of the demand for a particular item to variations in the price of a different item.
Pineapples
Tropical fruits that are known for their sweet and tart flavor, commonly used in cooking and baking.
Papayas
A tropical fruit that is sweet in taste, rich in vitamins, and typically has a yellow-orange flesh when ripe.
- Understand the concept of elasticity in economic terms, including price elasticity of demand, income elasticity, and cross-price elasticity.
- Calculate and interpret the price elasticity of demand using given data.
Verified Answer
TS
Learning Objectives
- Understand the concept of elasticity in economic terms, including price elasticity of demand, income elasticity, and cross-price elasticity.
- Calculate and interpret the price elasticity of demand using given data.