On average, eP _ [(-2.5) + (-4.5) + (-5)]/3 _ -4. A1% increase (decrease) in price will lead to a 4% decrease (increase) in the quantity demanded. The demand for sports watches is, therefore, elastic with respect to price.

D. In calculating the arc cross-price elasticity of demand, only consider consecutive months when there was a change in the price of dress watches, but no change in advertising or the price of sports watches:


Was this article helpful?

0 0
Your Retirement Planning Guide

Your Retirement Planning Guide

Don't Blame Us If You End Up Enjoying Your Retired Life Like None Of Your Other Retired Friends. Already Freaked-Out About Your Retirement? Not Having Any Idea As To How You Should Be Planning For It? Started To Doubt If Your Later Years Would Really Be As Golden As They Promised? Fret Not Right Guidance Is Just Around The Corner.

Get My Free Ebook

Post a comment